Key Terms & Conditions to Consider?

There are many important key terms we recommend in a business’ terms and conditions, such as:

1. Payment Terms: Your payment terms should be clearly stated, including the amount of payment, the payment schedule, and any penalties for late payment so that you may recover fees not only for late payment, but for all costs incurred to recover those debts. Well-drafted payment clauses can result in your lawyer essentially working free of charge for your debt recovery matters (as those fees can be added to the debt).
2. Privacy and Data Protection: As cyber and data security becomes more prevalent in our digital age, it is vital that businesses are compliant with the relevant privacy laws to protect any personal information collected from customers. Every business should have a privacy policy either included or supplemental to their terms and conditions to provide transparency about the collection and use of such information. A privacy policy can help limit a business’ liability by demonstrating that the business took reasonable steps to protect customer data.
3. PPSR (Personal Property Securities Register): PPSR clauses permit businesses to register their security interest in goods or services provided to customers. This can help protect your interests if your customer becomes insolvent or is unable to pay as it allows you to register your interest on the PPS Register (Australia’s national online register that records security interests against personal property).
4. Liability and Limitation of Liability: Limitation of liability clauses can help mitigate any risks associated with providing your goods and/or services. By limiting your liability, you can protect your business from potential business disputes and financial loss, including any claims of misrepresentation or false advertising.
5. Termination and Cancellation: The agreement should include provisions for termination and cancellation, including any notice periods, reasons for termination, and any costs or penalties associated with termination.

What are the Risks of Poorly Drafted Terms and Conditions?

We often see pitfalls of poorly drafted Terms and Conditions when it is too late. These pain points include:

1. Unclear Language: Poorly drafted Terms and Conditions can be vague, unclear, ambiguous or confusing. This can lead to disputes with customers who interpret the terms differently than intended. In the worst cases, disputes can escalate into legal action, which can be costly and time-consuming.

1. Unenforceability: Poorly drafted terms may be deemed to be unenforceable. This means that you may not be able to rely on them in legal disputes with your customers. In some cases, this can result in a complete loss of legal protection for your business.

1. Incomplete or missing clauses: If key clauses are missing from your agreement, or your terms are incomplete, it can leave you highly vulnerable to disputes and legal action. For example, a well-drafted Terms and Conditions of Service should include adequate liability limitations that protect your business from excessive claims.

1. Lack of customisation: Finally, one of the biggest pitfalls of poorly drafted Terms and Conditions of Service is that they may not be customised to the unique needs and risks of your business. A one-size-fits-all approach to Terms and Conditions of Service may leave your business exposed to unnecessary risks and liabilities, and may not be applicable to you at all.

Why Do I Need Terms and Conditions?

A well-written Services Agreement or Terms and Conditions is essential for protecting the rights and interests of both parties in a service-provision relationship. It is important to seek the advice of a legal professional when drafting and reviewing these agreements to ensure that they are clear, complete, enforceable, and adequately protect you.