What Are Terms Of Trade?

Contents

Terms of Trade set out the terms and conditions on which you’re engaging your clients and customers before you begin any work for them.

The purpose of Terms of Trade is to clearly communicate what can be expected from both your business and your clients when entering into a commercial relationship.

Your Terms of Trade will outline the scope of work to be provided and the rights and responsibilities of both parties under the contract.

When Do I Need Terms Of Trade?

If you’re a service provider and need a contract in place between your business and customers, a set of well-drafted Terms of Trade will help to set expectations for the scope of services to be provided to your customers.

Generally, your Terms of Trade can be accompanied by a cover sheet or Engagement Letter which includes your customers’ details and a brief description of what services you are to provide.

A well-drafted set of Terms of Trade will limit your liability and include important protections to ensure you secure revenue and maintain a transparent commercial relationship with your customers.

An Example

Rob started his business providing electrician services last year. Since then, his business has grown significantly and he is looking to get some sort of contract in place between his business and his customers.

A set of Terms of Trade is an agreement which he can provide to his customers detailing the terms and conditions of his business and the services he provides.

Rob can also include a cover letter to allow his customer to fill out their personal details and to address the specific scope of services Rob’s business is going to provide.

What’s Included In Terms of Trade?

Terms of Trade will include a range of clauses to protect your business.

Some common provisions you can find in Terms of Trade include:

Payment of services
Scope of services to be provided
Liability Protection
Confidentiality
Termination

Need Help With Terms of Trade?

A strong set of Terms of Trade will protect your commercial relationships with customers.

Having a good lawyer draft your Terms of Trade will ensure that your customers are clearly aware of the services you’re providing from the very start.

At Sprintlaw, we focus on drafting easy to understand and comprehensive contracts for many online businesses.

Feel free to get in touch with us to have a chat to us about your business and your questions about Terms of Trade. You can reach us via email at [email protected]

Esha Kumar

Esha is a law graduate at Sprintlaw from the University of Sydney. She has gained experience in public relations, boutique law firms and different roles at Sprintlaw to channel her passion for helping businesses get their legals sorted.