Why Terms Of Trade Matter.
Essentially, your terms of trade functions as a contract between you and your customers, covering important aspects of your transactions, such as payment terms, limitations on liability, and the obligations of your business. With terms agreed upfront, it is less likely for a dispute to arise, and if one does, it’s more likely to be resolved in your favour.
ROBUST TERMS OF TRADE SHOULD COVER:
- Your rights if a client doesn’t pay, and your ability to enforce payment.
- Your right to recover the costs associated with debt collection.
- Your ability to retain ownership of goods until payment is made.
- Your right to register the financing statement on the Personal Properties Securities Register (PPSR).
- Who has the obligation to insure the goods, and when that risk moves to the purchaser.
- Any manufacturer or other warranties that will be passed onto the buyer.
- Intellectual property rights.
- Information that must remain confidential.
- Terms limiting liability if something goes wrong with the goods or services.
- Circumstances under which the terms can be varied or the contract cancelled.
- The dispute resolution process.
Reducing Risk And Preventing Disputes.
Are you adequately protected by your terms of trade?
Having no or poorly written terms of trade can lead to costly, time-consuming disputes. Our expert team of commercial lawyers can help you establish and negotiate terms of trade specifically written to protect your business.
Reviewing And Updating Existing Terms of Trade.
Otherwise, if you already have terms of trade in place, we can review them to ensure they are up to date and relevant.