Burgess Thomson Lawyers

Terms & Conditions Of Trade

Business & Commercial

Terms & Conditions Of Trade in Newcastle NSW

The terms and conditions of trade establish the agreement between a business and its clients concerning what goods and services will be provided. The circumstances surrounding trade transactions can be complex and there are several risks involved with the supply of goods. The terms in a terms and conditions document are designed to help protect your interests and outline the rights, roles, and responsibilities of both parties. Terms and conditions should be printed on the back of every quote, tax invoice and purchase order.

Your sales terms and conditions are an essential legal document and must be well-drafted to minimize any legal risks and future disputes. Burgess Thomson can assist you with drafting your terms of trade and reviewing your terms and condition documents to minimise these risks and ensure your business is protected.

Find out more about how we can help with Terms & Conditions Of Trade.

Frequently asked questions

What key terms should I include in my terms and conditions?

In your terms and conditions of trade, you should include clauses detailing the following:

  • Quotes and price;
  • Invoicing and payment;
  • Consequences of fault of payments;
  • Ordering and variation to orders;
  • Delivery;
  • Acceptance of goods;
  • Defective goods;
  • Defaults and Termination;
  • Exclusions and limitation of liability;
  • Indemnity;
  • Force majeure – unexpected, uncontrollable acts; and
  • Dispute resolution.
What cannot be included in your Terms and Conditions of trade

You cannot include terms and conditions that allow you to completely avoid liability. These will not be enforceable. These include clauses that attempt to:

  • Exclude all warranties; or
  • the exclusion of all liability even for defective goods and services.

Under the Australian Consumer Law, consumer guarantees are automatic, and a business must comply with these standards.

What are the policies on returns, refunds, and exchanges?

Under Australian Consumer Law, customers have the right to ask for a refund, repair, or replacement if your product does not meet its guarantees. The Australian Competition and Consumer Commission enforces Australian Consumer Law, and it is crucial that you comply with these guarantees.

Some of the Australian Consumer Law guarantees include that a products must:

  • Be of acceptable quality;
  • match the descriptions made in advertising; and
  • meet any impressions made on their performance, condition, and quality.

Terms and conditions of trade should outline the process of how your customers may return, refund, and exchange products. This clause should clearly set out:

  • that your customers must provide you with a receipt proving they purchased your product that they would like to return, refund or exchange;
  • the time period during which customers can make returns;
  • which products that can be exchanged or refunded;
  • if you run an online business, who is responsible for the cost of sending a product back to you;
  • that you require evidence of any defects if the customer is claiming your product is defective; and
  • any warranties.
How do you ensure your terms and conditions are enforceable?

When drafting terms and conditions, you should ensure these are enforceable on your customers. To make them enforceable you must:

  • Make sure you encourage customers to read through your terms and conditions;
  • Highlight any important or unusual points;
  • Avoid any unfair terms;
  • Give your customers time to read through all the terms and conditions;
  • Remind customers that your terms and conditions are binding; and
  • Make sure your customers give active acceptance.

It is particularly important that your customers actively accept your terms and conditions of trade. This positive action of acceptance can be demonstrated online through asking customers to tick an unchecked box before proceeding or clicking an ‘accept’ button.

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