Special considerations for terms and conditions
Although standard terms and conditions may provide a useful starting point in negotiations for supply agreements, these generally won’t go into enough detail, so it will often be necessary to use a specific agreement.
If you’re entering into a long term relationship with a business, whereby you’ll be using their goods in a manufacturing process, it’s a good idea to have a special set of terms and conditions in place which deal with the various situations which can crop up in this type of scenario.
Defective goods which impact on the manufactured product can have serious implications so it’s vital that you have a section dealing with this in your Ts and Cs. The Consumer Protection Act allows actions for negligence to be brought against manufacturers whose products cause death, personal injury and damage private property as the result of any product defect. If goods used in the manufacturing process are responsible for the resulting defect, it may be possible for the manufacturer to take legal action against their supplier, but additionally you should cover defective goods in your terms so that you can return anything which you are not satisfied with.
Reselling goods or services can lead to various complications if there are any problems further down the line, so businesses on both sides of any resale agreement should ensure that they protect their interests with relevant terms and conditions. Occasionally, an intellectual property dispute can see a reseller being sued for products supplied or, conversely, a supplier may face legal action as a result of misleading marketing by the reseller. It’s far better to agree on how to resolve these types of liability issues at the outset of an agreement so that disputes can be avoided or more easily resolved later on.
Supplying a system
Certain business agreements may involve both the supply of goods and of services in order to build some kind of “system” which could, for example, be a complex piece of machinery which needs to be built on site, perhaps even integrated with other machinery. It’s important to ensure that you have terms and conditions which deal with both the goods which are being supplied and the services which are being delivered. Although it’s possible to have two separate agreements, you can also combine these, consolidating the various terms and making it easier to refer to them in case anything goes wrong.
A variety of Terms and Conditions relevant to your particular business can be downloaded from our Business Documents Folder. Click on any relevant templates in the list, below, for further information.