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Customer Terms and Conditions: 6 Key Considerations

By
Joe Kafrouni
16 Feb 2018
•
5
min read

What is it?

Customer terms and conditions are the rules that set out the rights and responsibilities of each party to a commercial transaction. It is usually be a supplemental document to the sale contract (if there is one) and it is generally standardised for all customers of a business.

Application for small business people

Most large companies have standard terms and conditions that they issue whenever a customer purchases a product or signs a contract for the ongoing delivery of a service. Whether it is a financial institution, an internet service provider or a car hire company, customer terms and conditions govern the way that consumers engage with these companies. As such, small business people will typically be parties to numerous “terms and conditions” as a customer during their regular course of business. It is important that these documents are read and understood so that the rights and obligations of each party are clear.

It is also advisable for small business owners to provide terms and conditions to their customers. Without anything in writing, the small business is running the risk of uncertainty and disputes with customers. Written agreements are much easier to enforce should the small business ever need to take legal action against a customer.

Certain industries, such as the telecommunications industry and the banking industry, have legislation governing the terms and conditions that they are required to provide to customers.

6 key things to consider

Some of the key factors to consider in relation to customer terms and conditions include:

  1. What are the charges to the customer, including up-front, ongoing and any variable expenses?
  2. How will the billing be structured and what are the payment terms?
  3. What are the obligations of the seller?
  4. What is the minimum term of the contract, if applicable?
  5. Can either party vary the terms and conditions? If so, what are the requirements for notifying the other party?
  6. How will the purchaser’s personal information by used by the seller?
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Joe Kafrouni, Accredited Specialist in Business Law, Kafrouni Law

Disclaimer: This article is general information only and is not legal advice. Before acting on it, get advice on your own circumstances. To the extent the law allows, Kafrouni Law accepts no liability for any loss arising from reliance on it. This article is the copyright of Kafrouni Law.

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