Is there a difference between terms and conditions for a business selling goods and terms and conditions for a business providing services?
Yes, there is a difference. Terms and conditions for businesses selling goods are mostly governed by consumer law. Terms and conditions for businesses providing services are mostly governed by contract law.
What should be included in terms and conditions for a business providing services?
At a minimum, your terms and conditions should include:
– who the agreement is between (i.e. your business and the user)
– what services will you provide
– how long will the agreement last
– when and how you will provide the services- how much the user will pay for the services
– what happens if either you or the user breach the agreement
You may also want to consider including other clauses such as:
– how will the agreement be terminated
– how will changes be made to the agreement
– what law governs the agreement
– what jurisdiction will the courts have in case of a dispute?
Including these clauses is not compulsory but may be advisable depending on your business and the services you provide. You should speak to a lawyer about which clauses are appropriate for your business.
What are some of the risks of not having terms and conditions for a business providing services?
If you do not have terms and conditions, you will miss out on an opportunity to set out clear expectations between you and your customers. Not having terms and conditions may also result in your customer’s misunderstandings about your business- for example, they may think that you offer a different service to what you actually provide.
Your customers may also have certain legal rights that you are unaware of (e.g. under consumer law), which they could assert against you if there is no contract. In summary, not having terms and conditions creates confusion and uncertainty between you and your customers and may result in legal problems. It is, therefore, advisable to have a clear and well-drafted set of terms and conditions for your business.
Please contact us if you need assistance drafting terms and conditions for your business. Our team of experienced lawyers can help you tailor-make Terms and conditions that are specific to your business and the services you provide.