Contracts are the lifeblood of any business. You cannot sell a good or a service without one. Every business has to contract if it is to survive and succeed.
Despite this reality, often not nearly enough attention is paid to making sure that appropriate terms and conditions govern the contracts that are entered into.
If you contract on the basis of another party’s standard terms and conditions, the likelihood is you will be subject to very onerous obligations that you may have no idea about.
Having your own standard terms and conditions and ensuring they apply will:
- give you valuable protection that otherwise you would not enjoy;
- reduce the risk of misunderstanding or uncertainty and so reduce the risk of costly disputes and their associated distraction.
By making sure appropriate contractual provisions were in place, our expert team have been able to achieve outstanding outcomes in the most challenging of situations. Examples include:
- Recovering £1.5M from an insolvent customer by successfully enforcing a contractual lien over their goods. Without the lien, it is unlikely the client would have received anything at all.
- Recovering £100,000 from an insolvent supplier by successfully enforcing a Retention of Title (ROT) clause. Without the ROT clause the client would have recovered nothing.
- Successfully limiting our client’s potential liability to its customers so that when things went wrong, the business survived and was not wound up. Without enforceable restrictions and limits of liability being incorporated into their contract, this household name would have been ruined financially.
If you do not contract on the basis of terms that are favourable to you and protect your interests, you are “betting the farm” every time you sell your goods or services. Don’t make that mistake.
Moreover, if your business sells its goods or services to consumers, as opposed to dealing purely on a business to business basis, then you need to be aware of the significant changes in the law which will affect you.
The Consumer Contract Regulations (CCR) came into force on 13 June 2014 and the Consumer Rights Act (CRA) became law on 1 October 2015.
The CCR improves consumer protection and rights in relation to sales made at a distance (e.g. online, over the telephone or by mail order) or off-premises (somewhere other than your business premises).
The CRA is an even more significant change to consumer rights and was introduced to simplify, strengthen and modernise the law in relation to consumer shopping and purchases.
At Linder Myers, our experienced Corporate Commercial team can produce new standard terms and conditions of sale for you.
If you require assistance with the preparation or reviewing of your terms and conditions, please do not hesitate to contact us on 0800 042 0700 or email email@example.comFind out more about our Corporate Commercial department