How Do I Write Business Terms And Conditions

how-do-i-write-business-terms-and-conditions

Drafting complete, legally binding and personalised terms and conditions for your business is an important task that every business must undertake. It is highly recommended that you seek professional help to ensure that your business terms and conditions cover everything that is required and avoid any terms, conditions or statements that may cause any legal complications.

Although you can get started on an initial draft to save money and begin to cover everything that may be specific to your business or the terms and conditions you want to ensure are part of the final document. That’s where this article will help.

Don’t Over Complicate It

Your business terms and conditions must be easy to read and understand for everyone. So be sure to write in a personal, friendly manner and avoid using legal jargon just for the sake of sounding professional. As well as providing a foundation for the terms of your business transactions, your terms and conditions can also be used a marketing tool.

If a prospective customer is confused about what your terms and conditions mean they may be less likely to buy. Whereas if they are written in easy to understand english and offer peace of mind to the customer by explaining what their rights and obligations are, it can help secure the sale. Also try to keep it short and to the point, no one likes to read pages of boring text when all they want is answers to their questions and it can also make a prospective customer feel they might miss some important information in the fine print that can make them second guess buying from you.

Explain Complex Terms

If you do have to use some legal terms or complicated language in your terms and conditions be sure to add a “Definitions” section at the end of the document. Once again this will make your business appear more transparent and trustworthy.

What Is Included In The Price

Be crystal clear about what the customer will actually receive for the quoted or marked price. If there are any extras that a customer may believe should be included in the cost be sure to address this and explain what is and is NOT included. Also if there are circumstances where prices may vary, communicate this very clearly.

This section needs to also cover charges for any modifications or extra work requested by the customer.

Avoid Misleading Statements

Honesty and transparency is crucial to building customer confidence, as well as repeat and referral sales. So avoid writing any statements that may be misinterpreted by your customers. Remember you are bound to your terms and conditions, and making misleading, deceptive or false statements may see you prosecuted under Australian Consumer Law.

Refund And Return Policy

It is compulsory under Australian Consumer Law to clearly state your refund and returns policy. Clearly explain what your return policy is including warranties, exchanges, refunds and the time limits that apply to these situations.

Payment Terms

Your payment terms are one of the most important elements of your terms and conditions. This will explain exactly when and how the customer is to pay for your goods and services, as well as any fees, charges or interest that may be incurred due to late payment. It is also a good idea to include that the customer will be liable for all recovery and legal costs if you need to hire a debt collector to recover any outstanding or overdue payments.

Customer Satisfaction And Quality

This section of your terms and conditions needs to clearly articulate your business’s commitment to delivering high quality goods and services, as well as explain that you 100% stand behind any products or services that you provide.

Limitation Of Liability Clause

Every business must include a limitation of liability clause in their terms and conditions. You need to protect your business by including this clause and it is highly recommended that you have legal professionals assist with drafting your limitation of liability clause.

Privacy

These days privacy is huge issue, especially on the Internet. So your business and website must include a privacy policy. Your terms and conditions should also refer back to policy to ensure that customers understand how their personal information will be handled.

As mentioned at the start of this article your business terms and conditions can really leave your business vulnerable if not drafted correctly. That is why it’s highly recommended that you at least speak with an experienced professional in this area before writing your terms and conditions.

Written by Richard Thompson

Richard Thompson is the Managing Director and owner of JMA Credit Control and has over 25 years’ of trusted experience. Richard has a wealth of knowledge in Credit Management and Debt Recovery ensuring client’s recovery bad debt quickly and cost effectively.

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