10 reasons why your business needs standard terms and conditions


Every supplier selling goods and/or services needs standard terms and conditions of business for the following reasons:

1) Save time and expense

Each time the supplier enters a contract to sell its goods or services, by having its own terms and conditions, it avoids the time and expense of creating a bespoke contract or having to rely on the terms implied by law (which favour the buyer) or, worse still, rely on the buyer’s terms which are inevitably even more in favour of the buyer than the terms implied by law.

2) Certainty

Terms and conditions give certainty as to the terms of the contract and make misunderstandings and therefore expensive legal disputes less likely.

3) Warranty control

The supplier can control the extent of any warranties it gives.

4) Limited liability

The supplier can exclude or limit its liability in many circumstances so that, if something goes badly wrong on a contract, the whole of the supplier’s business is not put at risk.

5) Ownership of goods

If a buyer becomes insolvent before it pays the supplier for goods, the supplier can take back the goods it has supplied.

6) Payment security

The price and the time for payment can be firmly established.

7) Additional services

The scope of any services can be clearly defined which will enable the supplier to trigger additional charges when the buyer requires services that are outside scope.

8) Termination

The supplier can control the circumstances in which it can terminate the relationship.

9) Online obligations

Where the supplier is selling on-line to consumers, legally the supplier must provide certain information and much of this information can be set out in the standard terms and conditions.

10) Credibility

Although not a legal reason, the use of a well-drafted, clear set of terms and conditions makes a business look professional thereby enhancing the credibility of its goods and services.


Jordans Corporate Law advises business from multi-national corporates through to start-ups on their terms and conditions so, no matter what the size or type of your business, we can prepare terms and conditions for you that are suitable for and bespoke to your business and the risks that it faces. For further information, please contact Simon Bates on 0117 918 1210 or sbates@jordanscorporatelaw.com.

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