As a team of leading business lawyers in Australia, we know it is important to manage your relationships with other businesses and customers. One of the best ways to ensure protection of your business and to make sure that you are paid is to have a well-drafted terms of trade between your business and and its customers.
What are Terms of Trade?
The terms of trade refers to the terms or the contract between a seller and a buyer, outlining the contractual obligations of each party to the other. Having clear and concise terms of trade will minimise the risk of disputes or delayed payments.
What to include in the Terms of Trade
There are a few essential aspects that should be included in the terms of trade, to clearly identify the obligations of each party. This is done with the aim of preventing any disputes at a later stage.
- The party with whom you are doing business should be identified
- it should state the exact nature of the goods and services provided
- the price should be clearly stated, whether it is a fixed price or a varied one
- the length of time that a quote is valid, if one is given
- the method of payment accepted, and whether credit is given and on what terms
- details on any warranties offered, if any
- any specific guarantee arrangements, especially with debtors to whom you extend credit
There are many cases where standard terms are not applicable and in this case you’ll need to draw up a specific contract. This is where the help of specialist business lawyers comes in. At Parke Lawyers we can provide tailored contractual documents to suit your needs.