Let’s be honest: contracts and terms and conditions (T&Cs) are not the most exciting aspects of running a business. However, getting them right is crucial; it can mean the difference between protecting your business and leaving it vulnerable to disputes, unpaid invoices, and legal issues.
Many small and medium-sized enterprises (SMEs) and start-ups often resort to one of three approaches:
- They copy existing content from Google,
- They purchase a generic template online, or
- They rely exclusively on the payment terms included in their orders or quotes (if any).
Does this sound familiar? If so, you’re not alone. However, it’s important to recognise that these strategies can lead to costly mistakes. Let’s discuss why this is the case and explore what you can do to address it.
1. Why Your Business Needs Its Own Contracts & T&Cs
Your business is unique, and your contracts and T&Cs should reflect that.
Protection from Legal Disputes
Disagreements happen in business. Clear, well-drafted contracts and T&Cs set out exactly what you’ve agreed with your customers or clients, reducing the chances of disputes and giving you a solid foundation if something goes wrong.
Clarity on Payment and Liability
Relying only on payment terms in a quote or invoice might tell customers how much they need to pay and when, but what about:
- Late payments and interest charges?
- Refunds and cancellations?
- Right to suspend performance or supply for non-payment?
- Who is liable if something goes wrong?
Your contracts and T&Cs should spell all this out, so you don’t have to fight for what’s owed to you.
Strengthening Your Business Reputation
Having well-drafted contracts and T&Cs shows professionalism. It reassures your customers or clients that they’re dealing with a credible business, which can be a deciding factor in winning contracts and maintaining good relationships.
2. Why You Should Get Your Contracts & T&Cs Reviewed
If you’ve copied your contracts and T&Cs from the internet or bought a one-size-fits-all template, they might not actually protect you. Worse still, they might be completely unsuitable for your business.
Are They Even Legally Binding?
Contracts and T&Cs need to be incorporated properly into your agreements with customers or clients. If they’re not, they might not be enforceable. A review ensures they are working for you, not against you.
Do They Reflect the Latest Laws?
Laws change, and generic templates don’t always keep up. Are your consumer contracts compliant with UK consumer law? Do your contracts and T&Cs address data protection properly? If you’re unsure, a legal review can help.
Are They Actually Protecting Your Business?
A business selling digital services will need different terms and contracts than one selling physical goods. A B2B company will have different needs from a B2C business. If your contracts and T&Cs aren’t tailored to how you actually operate, they could be leaving you exposed.
The Bottom Line
If your Contracts and Terms and Conditions:
- Are copied from another business,
- Are based on a generic template,
- Are not written down, or
- Haven’t been reviewed in years…
…it’s time to take action.
Getting your own set of properly drafted and reviewed contracts and T&Cs isn’t just a box-ticking exercise—it’s an investment in your business’s security and professionalism. If you’re ready to make sure your legal agreements work for you (not against you) contact us to arrange a call and we can help get your legals in order allowing you to focus on what you do best…running and growing your business. You can email us at National Business Register on info@nbrg.co.uk or call 0800 069 9090.
