Using terms and conditions to manage exposure to creditors
Just as a seller is in a better position if they use their own sales terms and conditions when offering trade credit, it’s similarly in your best interests as a purchaser to use your own purchase Ts & Cs, to help avoid any disagreements, and to put your intentions in writing as a basis for resolving any disputes which may crop up.
Your purchase Ts and Cs should contain comprehensive set of protections for you, regulating the business relationship, safeguarding your interests and setting out the obligations of both parties. The Ts and Cs should include product or service specification, price, payment, delivery and expected quality, rights of return or refund. As a business purchaser you are reliant for legal protection to a very large extent on what you agree with the seller in your purchase terms, in contrast to a consumer who will benefit from various statutory protections.
You might use Purchase Orders as well as a set of purchase terms and conditions to set out many of the basic elements of the agreement to purchase (including quantities, prices and any available discounts).
These types of documents are also extremely useful in the event that a dispute ends up going to court.
A variety of documents which may help with reducing creditor exposure by using terms and conditions can be downloaded from our Business Documents Folder.