Paul Sullivan, Managing Partner
When you run a business, it is inevitable that you will need to negotiate contracts with people, whether they are your suppliers or your customers, so it is important to understand exactly what needs to go into your contracts and how to protect your business.
Putting your agreements in writing can help everyone involved to be clear about what has been agreed and should help to resolve any disputes if and when they might arise.
Basic terms and conditions for customers or suppliers will clearly outline the terms of your business with them and will include the agreed price, the terms of payment of any invoices, what you are agreeing to supply or purchase and the delivery terms of the items and any timescales involved in this.
It is important to note that as a business you are legally entitled to claim interest on any late payments made and in some circumstances, to claim back additional fees to cover debt recovery, although this will be of little comfort if the company you are chasing is insolvent.
You should be clear about who you are supplying your goods to, as the law provides more protection to individuals than it does to businesses. If your main customer base are individual consumers, it is necessary for you to understand these additional rights, so you can include them in your contracts.
When entering a contract with another business, you should be clear about what is not your responsibility or liability. This may include things such as delays from third party suppliers or perhaps costs of delivery.
You should also outline what will happen in the event of a breach of the contract. This will depend on who you are setting the contract up with and whether you have agreed strict delivery dates. Remember though that enforceability of these terms may be costly and time consuming and offer you little financial reward.
Negotiating and drafting contracts can be complex and it is important to get the detail right as this can have significant implications for your business on down the line.
For more information about this article or any aspect of business and personal legal solutions, please contact Paul Sullivan at: psullivan@sullivanslaw.uk
0+
