During the initial stages of setting up a business, a small business owner may be overwhelmed by the seemingly never ending list of tasks. One of these is knowing and learning how to write terms and conditions. Aside from this, small business owners must also focus on working on their product or service, marketing their business, and reaching out to their potential customers.
Some may put writing the terms and conditions at the bottom of the to do list but the truth is, the terms and conditions are incredibly important. They are essentially the rules by which your company runs. What do you do if a client doesn’t pay? What do you do if a client wants a refund? Are you protected in these instances? Without terms and conditions, you leave yourself vulnerable to cancellations, refunds, essentially, loss of money not to mention a lack of terms and conditions might make you liable for client’s actions. Terms and Conditions are there to protect everyone.
Why is there a need for terms and conditions?
Small businesses that do not have terms and conditions can be at risk because of uncertainty of the rules and misunderstandings with their customers and clients. This is why it is important to have the terms and conditions in black and white so that the parameters are set. It is a way of protecting the business from unscrupulous refunds and transactions. The terms and conditions become evidence in case small business owners decide to take things to court. This document will become the agreement between the small business and its customers, suppliers, or partners in joint ventures and it shows the duties, roles, rights, and responsibilities of both parties.
What should be in the terms and conditions?
The terms and conditions should be drafted because it acts like a manual for the small business. It gives clarity the “rules” when something happens. It is an agreement between two parties that are doing deals or transactions. So what should exactly be in the terms and conditions? There are a number of things that should be in the document and these include the following: • Definition of the services or the products that the small business will be providing. The definition should be clear. • The payment terms of the services or the products should be in the terms and conditions. It should also state when payments are due. • The terms and conditions should also have any warranties or any guarantees that are being offered by the small business. • The timeline for any deliveries. • The timeline for any queries. • Specifications of the repercussions that should happen if any of the parties do not deliver what has been promised. • Specifications of the repercussions that should happen if any of the parties want to end or cancel the current relationship that they have. • All terms that are included in the agreement. • All of the requirements needed to cancel and get out of the current agreement. • The laws that will be followed with regards to the contract and agreement. • The possibility of any changes or any amendments that would be done to the small business’ terms and agreements. There are businesses that include the terms and agreement at the back of the invoice or the receipt though it is not a legal requirement to do so.
Should one get help with writing the terms and agreement?
All terms and agreements are unique in the sense that they are fitted to each business. So what could work for one business may not work for another. Therefore, it is highly recommended that a small business owner consult with a lawyer to do this properly. It is important to get expert help on something as important as this.
The terms and conditions should not take a back seat when small business owners are still setting up shop. These serve as the business’ manual and should be given the utmost attention.
published under Business Address Guides
