Entrepreneurs embarking on new business ventures often enter new customer and business arrangements.
Setting out the terms and conditions of these arrangements might not be of highest priority to those new business owners with never-ending to-do lists; however, neglecting this aspect of business may create future financial burdens.
To avoid monetary disputes and the risk of late payments, the terms and conditions should be established from the beginning of the business deal. The terms and conditions should be in writing and cover the responsibilities, duties, rights and roles of each party.
The terms and conditions need to be specific and clearly state:
What products and services will be provided
When payment is to be made
What happens if a product or service is faulty – is there any guarantees or warranties offered
A refund policy
If a guarantor is needed
When drafting up your business’s terms and conditions make sure they comply with the Australian Consumer Law and other relevant legislation. If you are unsure, seek professional advice.