Legal Issues for Sales Management
Why do I need terms and conditions?
Having a properly written set of terms and conditions (or Ts and Cs) in
place can help you protect your business interests when you’re trading with
other businesses or consumers. They should set out various processes such
as payment, delivery and returns so that both parties know what to expect
prior to any transaction taking place. This can lead to a smoother way of
doing business and reduce the possibility of disputes further down the
line.
What kind of Ts and Cs should be applied to goods?
If you’re selling goods, your business will face a specific set of
challenges, many of which can be tackled with effective Ts and Cs. As well
as being aware of your obligations regarding any faulty goods, you’ll need
to plan in advance how to deal with the situation where customers wish to
return goods for other reasons; how lenient will your returns policy be?
Also, how will you manage deliveries, particularly in the case of bulky
goods?
What kind of Ts and Cs should be applied to services?
Businesses which supply a service need to keep an eye on timing of
delivery, particularly if manual labour is part of the service, such as
plumbing or building work. What are the completion dates and what happens
if these can’t be met for certain reasons? What happens if a customer is
unhappy with the service or wants to end a contract? These are the types of
questions which should be addressed in Ts and Cs for suppliers of services.
What are the considerations for consumers?
There is a lot of legislation which protects the interests of consumers,
including the Consumer Rights Act2015. B2C companies need to ensure that
their Ts and Cs protect their business interests within the constraints of
consumer protections.
What if I provide any credit facilities?
If you provide hire purchase or any other credit facilities to customers
and the circumstances fall within the scope of the Consumer Credit Act
1974, all aspects of the arrangements will be regulated by that Act. This
is a technical area on which you would need expert advice. (You need to
bear in mind that the Act applies not only where the customer is a single
individual consumer but also for other types of customer.)
Do I need special Ts and Cs if I’m a manufacturer or reseller?
If an ongoing business relationship is being negotiated, such as for the
supply of goods to a manufacturer or reseller, it will be useful to reach
an agreement which goes beyond a set of standard Ts and Cs. Issues such as
liability and intellectual property may need to be taken into account.
How do I change or terminate a contractual agreement?
If your commercial situation changes, it may be necessary to consider
changing certain terms of a contractual agreement for the supply of goods
or services - or even to bring the agreement to an end. It’s important to
know how to do this efficiently and effectively.
A variety of terms and conditions documents can be downloaded from our
Business Documents Folder. Click on any relevant templates in the list,
below, for further information.