Let’s be honest: drafting general terms and conditions isn’t the first thing you think about when starting a business. You want to focus on your core business, not on dusty documents. But beware: there are situations where you might later wish you had created those terms after all.
So, what are general terms and conditions exactly?
In short, general terms and conditions are the rules of your business. They ensure that both you and your customers know what to expect when buying a product or entering into a service agreement. You might think: isn’t this already in my contract? A contract indeed contains the specific agreements with your customer—such as the purchase price and quantity. General terms and conditions are an addition to that contract: they cover topics that don’t need to be negotiated for every individual assignment. These are terms that apply to all customers. Think of the payment terms for your invoices and what happens in case of cancellation.
By working with general terms and conditions, you stand on stronger legal ground if a conflict arises between you and your customer: you can rely on what you agreed upon in your terms, preventing ambiguity. In addition, you avoid the risk of forgetting to include important clauses in your contract—the key points are already secured in your general terms and conditions.
And if I just draft the document, am I covered?
Simply drafting general terms and conditions is not enough—you must also ensure that they actually apply to your agreements. If you do business with a legal entity or a company with more than 50 employees, your general terms and conditions apply if you refer to them in, for example, your offer or contract and your customer does not object. For consumers and small businesses, stricter rules apply: you must actually provide or attach your terms to the customer before the agreement is concluded. In both cases, it’s important to know that applicability does not require that someone has actually read the terms.
Convinced, but not sure where to start?
We can draft general terms and conditions tailored to your situation and wishes, or review your existing ones if you’re unsure whether they’re legally watertight or still comply with new legislation.
Are you the one disagreeing with another company’s general terms and conditions? Let us know—you don’t have to passively accept whatever someone else wants to impose on you!
