Supply of Goods Terms of Business
When dealing with customers, whether they are other businesses or consumers, the value of having a set of Terms of business in place should not be underestimated. In businesses where every transaction is subject to the same terms, they ensure that customers are fully aware of their rights and obligations from the outset.
The sale and supply terms of business in this subfolder cover a range of sale of goods transactions from a simple business-to-consumer sale to a variety of business-to-business transactions for both immediate sale and long term supply of goods with provisions for the retention of title and “all monies” clauses.
All sale and supply of goods terms of business are fully compliant with all relevant legislation and current best practice.
Supply of Goods Terms of Business is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.
Frequently Asked Questions
Why do I need written terms of business for selling goods? +
Because they decide the deal on your terms rather than leaving gaps for a customer to exploit. Written terms fix price, payment dates, delivery, when ownership and risk pass and your remedies if you are not paid, so both sides know where they stand from the start. Without them the bare implied terms of the Sale of Goods Act 1979 apply and everything else is open to argument. These templates give you a consistent set to use on every sale.
Can I use the same terms of business for both business and consumer customers? +
It is safer not to. Consumer sales are governed by the Consumer Rights Act 2015 and carry rights you cannot exclude, plus pre-contract information and cancellation duties that do not apply between businesses. Business sales run under the Sale of Goods Act 1979 with more freedom of terms. One set of terms trying to cover both usually either overreaches against consumers or under-protects you in trade. This sub-folder has separate versions for consumer and business sales.
What is an all monies retention of title clause and should my terms include one? +
An all monies clause keeps your ownership of goods until the customer has paid everything they owe you, not just the invoice for those particular goods. It is usually stronger and simpler to enforce than a clause tied to a single consignment, because you do not have to match specific goods to specific unpaid invoices. Section 19 of the Sale of Goods Act 1979 permits it. The business terms in this sub-folder include all monies retention of title wording.
Do my terms of business apply automatically, or do I have to do something to make them stick? +
You have to bring them to the customer's attention before the contract is made. Terms buried on the back of an invoice sent after the deal is done may not bind the customer, and where both sides trade on their own standard terms the last set sent and accepted before performance usually wins. So reference your terms on quotes and order forms, get them accepted up front and keep the record. The templates are drafted to be incorporated this way.
What key protections should business-to-business terms of sale include? +
The core set is clear payment terms with interest on late payment, retention of title until you are paid, a reasonable limit on your liability, clear delivery and passing of risk and your rights if the buyer defaults or becomes insolvent. Any liability limit has to be reasonable under the Unfair Contract Terms Act 1977 to be enforceable. The business terms in this sub-folder are built around these protections.
