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As a new business in 2025, one of your top priorities remains laying the foundations for healthy, long‐lasting relationships with your customers.
When you’re striking deals and selling goods – whether in a brick-and-mortar shop or online – you and your customers need a clear understanding of where you both stand in the transaction and what your respective rights and responsibilities are.
You’ll also need a way of safeguarding your interests and avoiding unnecessary disputes if a sale or agreement doesn’t go to plan.
To help with this, it’s wise to have professionally drafted Terms of Sale for your business.
What Are Terms Of Sale?
Terms of Sale are the contractual terms and conditions that both buyer and seller agree upon, governing the relationship between your business and your customers. In essence, they form the backbone of your business dealings and ensure that both parties have a clear understanding of their obligations.
Often, Terms of Sale are synonymous with Business Terms and Conditions. You might also hear them referred to as Engagement Letters, Customer Contracts, or even Service Agreements. Regardless of the name, they all serve the same purpose: to form a clear and binding contractual agreement between your business and its customers.
When Do I Need Terms Of Sale?
If your business provides goods or services, it remains essential in 2025 to have Terms of Sale in place. This is even more important as the digital marketplace continues to evolve, and consumers expect robust protection and clarity in every transaction.
Terms of Sale serve as a critical component of every transaction by outlining what you can expect from your customers and what they can expect from you. They help streamline deals so that every sale is subject to a consistent set of terms.
Moreover, in today’s dynamic regulatory environment, clearly written Terms of Sale can simplify the process of resolving disputes by clearly indicating the rights and liabilities of each party. For further insights on complying with modern consumer expectations, you might find our article on How Can Your Business Comply with Consumer Guarantees useful.
How Do I Use Terms Of Sale?
Terms of Sale can be formatted as a formal contract that is signed between your business and your customers. However, in many cases it is more practical to have the terms presented in a manner that can be attached to the back of an invoice, proposal, or displayed on your website.
For instance, you might include a statement such as: “Customers are bound by these Terms of Sale when they order, accept, or pay for any services provided by us, which are subject to these terms.” This method does not require a separate signature provided that the terms are clearly communicated – for more on online business policies, see our guide on Do You Need Website Terms and Conditions?.
It is crucial, however, that you ensure your customers are made aware of the Terms of Sale before completing a transaction. Displaying these terms prominently during the checkout process or including them with your written communications can help secure their consent.
What’s Included In Terms Of Sale?
The contents of your Terms of Sale will be unique to your business and may vary depending on the types of goods or services you offer. However, several key elements are typically included:
Common details include the price, method of payment, delivery or shipping arrangements, returns and refunds policies, warranties, and limitations of liability. In today’s market, it’s also wise to cater for digital payment methods – such as contactless payments and even cryptocurrency (How to Accept Cryptocurrency) – as well as addressing online security measures.
Price
The agreed price between you and your customers for the goods or services in question.
Payment
Details regarding when and how payment must be made, whether any up-front payments are required, and the consequences of late payment – such as the imposition of late fees. For further clarity on binding agreements, you might refer to our article on What Makes a Contract Legally Binding.
Delivery/Shipping
Clarification on what is being delivered, how and where it will be delivered, the associated delivery charges, and the estimated timescale for delivery.
Returns and Refunds
The conditions under which a good may be returned or refunded, including any deadlines for returns and whether any fees apply. This is particularly pertinent given the evolving landscape of consumer rights in 2025.
Warranties
Information on any warranties provided by your business, what they cover, the duration of the warranty, and any circumstances in which the warranty might be void.
Liability
A clear outline of the extent to which your business is liable should something go wrong, including any specific limitations that safeguard your interests. For additional guidance on this topic, you may wish to read our detailed overview of Exclusion Clauses.
In addition to these core elements, you might consider including clauses that address dispute resolution processes, digital transaction security, and compliance with current ecommerce legislation. As the online trading landscape evolves, having comprehensive and up-to-date Terms of Sale is increasingly vital.
Given the rapid changes in consumer protection and digital trading regulations in 2025, it is crucial to review and update your Terms of Sale regularly. Many businesses benefit from periodic legal audits – much like our insights outlined in Legal Requirements for Starting a Business – ensuring that your terms not only protect your interests but also remain compliant with the latest standards and best practices.
Takeaway
Getting your Terms of Sale right is imperative for establishing clear boundaries in your transactions, limiting liability, and protecting your business when unforeseen issues arise. In 2025, with the digital marketplace more robust than ever, having legally sound, updated, and customised Terms of Sale will leave you and your customers feeling secure and well-informed about your mutual obligations.
A strong set of Terms of Sale for your business not only ensures consistency across every transaction but also enhances customer confidence and mitigates potential disputes.
If you need assistance establishing or updating your business’ Terms of Sale, it is wise to consult a lawyer rather than rely on generic templates. At Sprintlaw, our team of experienced lawyers is on hand to provide fixed-fee services, ensuring your Terms of Sale are tailored to the specific needs of your business. Check out our fixed-fee Terms of Sale package for customised legal support, or email us at [email protected] for expert advice.
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