Stephen Robertson’s Post

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Legal Practitioner Director at SJR Commercial Law

What do trading terms do, anyway? [Trading terms series - article #1] Clients often have a sense (or have been told) that they 'need' terms and conditions for their business (and they do). But how do you know what you need, or what to include? Can't you just copy a set from the internet and adapt them? [See my tips on that common approach, below.] This week, I'm writing all about trading terms, to help get business owners on the right track - to explore what trading terms are for, how to make them work, what to include, and what to leave out. To begin: How do you actually get trading terms to work? You need a good process to get your trading terms to work effectively. Here is my take on how to get them to sing: 1. They must match how your business actually operates, in a practical sense. Generic terms which don’t match your actual operations are… 'sub-optimal'. Often, generic terms say something completely irrelevant or unhelpful. Try to avoid this. 2. You need a proper, worthwhile process to get clients to accept your trading terms. This is 100% necessary for many technical legal reasons. Don’t just publish the terms on your website – you need to build them into your customer engagement process. You will need some form of signup – you could do that on paper (I guess, but it is 2023…), by communicating them with your quotes, or through a range of great digital solutions. I prefer that clients don’t rely on a single sign-up alone – I prefer to have layers of communication for client's trading terms. Build a reference into invoices and into your periodic credit reviews - that's an important safety net. 3. You need to integrate your trading terms (and the actions flowing from them) into your business systems. Can you set up your ordering system, so that the first supply can’t be made until someone has confirmed trading terms are in place? Consider going another step (if supplying on credit) and ensuring that the first supply can’t be made until your PPS registration is in place. 4. Your terms should include a process for updating your terms. Make it easier on yourself next time! 5. Use complementary documents (credit application etc.) to make terms work better. And listen... if you absolutely must copy a set of trading terms from the internet then here are some frank tips for that: A. copy from a source in your own country - where the same law applies - and choose a reputable source, in a similar industry, who has spent actual money on their terms; B. change enough that your breach of copyright will not be blindingly obvious; C. don't accidentally copy their 'website terms of use' accidentally - you want their trading terms (yes, I have seen this done several times...) D. seriously, just don’t do this - you're just buying future problems... ask for some professional help instead. Check in later in the week for more tips on 'all things trading terms'. #tradingterms #commerciallaw #QldLaw

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Stephen Robertson

Legal Practitioner Director at SJR Commercial Law

1y

Richard Arrage this is #1 of 5

Chris Hargreaves

A Lawyer who Does Law Firm Marketing

1y

commenting to approve the use of the word "sub-optimal" :-)

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