RSS

Q: When writing up a customer contract, what things should I include to protect myself?

Aug 18 2009

Answered by: Clive Lewis     Ask a question

Well-written sales contracts are essential to any small business that deals in products and services. The sales contract is an agreement that specifies the rights and obligations of both the seller and buyer.

Businesses need to tailor their sales contracts to suit the specific needs of their type of business. Often, the agreement is printed on the back of the invoice or bill of sale. For those customers who pay for an item when they buy it, they automatically accept the terms of the sale at the point of purchase.

When drawing up a sales contract for your business, you need to have it reflect the particular aspects of your business, including types of products and services as well as price and payment terms. You can also make the contract more favourable to you as the seller. The following are general terms and conditions that you can include in your sales contract:

  • Identification of the contracting parties: identifies who is the seller and who is the buyer
  • Description of goods and/or services: Describes what specifically is being bought and sold
  • Price and payment terms: Gives the price of goods and/or services, including taxes, and finance charges.
  • Buyer and seller's rights and obligations: this includes any representations and warranties.
  • Liability limitations: sellers try to limit their liability to the purchase price (include a clause that states that you are not responsible for lost profits or damages caused by malfunctions)

Getting the terms and conditions (T&Cs) right is the best protection you can get. Look at the T & Cs of businesses providing similar products or services. It may be wise to consult a lawyer or a chartered accountant as ill-defined T & Cs can cost considerable sums of money if they are not appropriate to the circumstances of the contract.

 
Comments

There are currently no comments on this article

FREE Legal, Financial, Accountancy & HR Help

Aska Professional understands the challenges faced by small businesses. That’s why we provide instant access to professional advice and legal templates. FREE access to Solicitors, Accountants, Financial Advisors & HR Specialists. Ask our experts a question and get a personal response within 60 minutes. Sign up now to ask a question - FREE.

Hiscox business insurance for small & medium businesses

Hiscox offer specialist business insurance for office based professionals and consultants. Hiscox understand's every business is different and work hard to understand the specific risks small businesses face. Find out which business insurance is suitable for you.

Bupa for Businesses 

We understand that all businesses are different. To help you choose the right healthcare package for you and your employees, call us today on 08457 66 11 15 or alternatively find out more here.

Will the latest apprenticeship fund persuade you to take on interns?




Site map

« Expand to view
Small Business Offers