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ARTICLE · 27 SEPTEMBER 2010

Are You Contracting On Your Own Terms?

Businesses often give their standard terms and conditions of business (T&C) low priority until a dispute arises, by which time it may be too late.

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Siobhan Creely
Siobhan Creely

Businesses often give their standard terms and conditions of business (T&C) low priority until a dispute arises, by which time it may be too late. It is not uncommon for a sales department to issue quotations or accept orders using terms that are out of date, copied from the internet or even be conducting business on the customer's terms because the customer has successfully substituted their own T&C for yours.

Terms & Conditions will be useless unless proper procedures are followed to ensure they are incorporated into the contract and prevail over any competing T&C. They will not bind your customers unless they have been incorporated.

The common law rule is that after a contract has been formed by offer and acceptance between the parties, new contract terms cannot be introduced (unless by mutual consent). Therefore the all too frequent business practice of sellers seeking to impose their T&C by printing them on the back of their invoices will not be sufficient to

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