Terms and conditions are essentially the contract you have in place between your business and your customers. Terms and conditions, often referred to as T&Cs or terms of service, are a set of rules, guidelines and legal agreements that set out the basis on which a business will provide goods or services to its customers or users. T&Cs establish the rights, responsibilities and obligations of both the provider and the user or customer.

Top tip:  terms and conditions for business to business relationships are very different to terms and conditions used in business to individual (consumer) relationships. If you provide goods or services to both businesses and individuals, you will likely need two sets of terms and conditions.

Who needs them?

All businesses need terms and conditions, regardless of whether you are a brand new start up or have been trading for a number of years. If you don’t have terms and conditions, you should be thinking about getting a set drafted and in place. If you do have terms and conditions, you might want to consider reviewing and refreshing them. If you provide goods or services to customers or users in any capacity, terms and conditions are essential to protect your rights, define customer or user obligations and establish a legal frame work for the relationship.

What should they contain?

Terms and conditions can vary depending on the nature of the business, the products or services offered, and legal requirements specific to the area of work. However, there are some common elements that terms and conditions should typically contain such as introduction definitions, user/customer obligations, payment terms, privacy policy, limitation of liability and termination to name but a few. A good set of terms and conditions should contain a balance of terms that are legally necessary, terms that are fundamental to protect your business, and terms that are bespoke to how you operate.

Here are some examples of different types of terms and conditions:

• E-commerce businesses: terms and conditions when trading over the internet contain specific provisions relating to online transactions, and will contain different clauses to goods or services being supplied in person;
• Service providers: businesses offering services such as IT support, software development, consulting etc, will need terms and conditions to define the scope of the services, payment terms and other essential provisions;
• Software developers: another unique type of work that requires specific provisions built into terms and conditions covering things such as ownership of software developed, use of the software, user obligations, intellectual property rights and data usage;
• Websites and online platforms: websites and online platforms, even if not being used to buy goods/services online, require terms and conditions that govern the use of the platform, privacy policies, intellectual property rights, and cookie policies amongst other things;
• Membership of subscription based services: in this situation terms and conditions should outline the terms of membership or subscription, payment details, cancellation policies and any additional terms related to the ongoing service;
• Fundraising or sponsorship platforms: this requires a specific type of terms and conditions to cover not only the standard contract terms such as fees, scope of work agreed but also the legal requirements for this niche area

Top tip:  Don’t be tempted to use something you find on the internet – it will rarely be fit for purpose, suit your business needs and may not be up to date with current legal requirements!

What happens if they aren’t right?

If terms and conditions aren’t appropriately written or if a business doesn’t have T&Cs at all, it can potentially lead to a number of negative consequences. Here are some examples:

• Legal disputes: poorly drafted or ambiguous terms and conditions give rise to misunderstandings or disagreements. This can lead to disputes and potentially result in legal action;
• Lack of legal protection: if terms and conditions do not adequately protect a business’ rights and interests, that business could be at a disadvantage if conflicts or issues arise;
• Non-compliance with laws and regulations: no business wishes to find themselves subject to legal penalties or regulatory scrutiny for failure to address legal requirements;
• User dissatisfaction: if terms and conditions are unclear, unfair or overly complex it could lead to your customers feeling frustration, complaining or giving negative reviews. This could harm a business’ reputation

To mitigate these risks, it is crucial for businesses to ensure that their terms and conditions are well drafted, comprehensive and legally compliant.

Top tip:  seek guidance from a legal professional experienced in contract law to help create effective terms and conditions that give protection to your business.

To learn more about terms and conditions and to make sure you get your legal documents right, contact us today. Call 01302 320621 or email help@switalskis.com