As a team of leading business lawyers in Australia, we know that it is important to manage your relationships with other businesses as well as your customer well. One of the best ways to ensure that you protect your business and to make sure that you are paid is to have a well-constructed Terms of Trade between your business and everyone else you do business with.
What Are Terms of Trade?
The Terms of Trade refers to the terms or the contract between a seller and a buyer, outlining the respective parties’ contractual obligations to each other. Having a clear and concise Terms of Trade will minimise any dispute or bad debt that may arise as a result of a dispute.
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 state what each party is responsible for. This is done with the aim of preventing any disputes at a later stage.
- The party that you are doing business with 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 companies you extend credit to.
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 experienced business lawyers comes in. At Parke Lawyers we can help you to draw up any business contract, no matter how complicated.
For more information about our services, we invite you to contact us.