All South Australian businesses, including tradespeople, that supply goods or services should have valid and up-to-date Terms of Trade in place.

A company’s Terms of Trade encompass crucial aspects of the business-client relationship, including payment terms, conditions, limitations, liabilities, and obligations.

For instance, Terms of Trade can address the following:

• Your rights if a client fails to make payment and your ability to enforce payment.
• Your right to recover costs associated with debt collection.
• Your ability to retain ownership of goods until payment is received.
• Your right to register your interest in goods on the Personal Properties Securities (PPS) register.
• The party responsible for insuring the goods and when the risk shifts to the purchaser.
• The process for resolving disputes.
• For goods, the manufacturer or other warranties that will be passed onto the buyer.
• Intellectual property rights.
• What information (if any) must remain confidential.
• Terms limiting liability in case of issues with goods or services.
• Conditions under which the terms can be varied, or the contract cancelled.

Having these terms agreed upon at the beginning of the business-client relationship reduces the likelihood of disputes, or in the event of a dispute, suppliers with clearly defined Terms of Trade are more likely to have a favourable resolution. Conversely, having no or poorly written Terms of Trade can lead to unnecessary stress and a strain on the business’ financial resources.

How can Websters Lawyers help?

Websters Lawyers can assist South Australian businesses in establishing customised Terms of Trade to protect their interests. We also offer a review service for existing Terms of Trade, ensuring they remain effective, up-to-date, and relevant. Our focus is twofold: to enable businesses to trade more efficiently and to do so in an economically viable manner. We provide competitive fixed-fee quotes, ensuring transparency from the outset. Leveraging our extensive experience in helping South Australian businesses with Terms of Trade, we can provide quick and seamless incorporation of your Terms of Trade into your business operations.

Examples of how Terms of Trade prepared by Websters Lawyers can empower your business:

Managing Variations

Dealing with invoice variations can be challenging, especially when clients are hesitant to accept written price increases. Our solution involves defining variations from the outset and providing the scope to quote additional fees for any extra work. Our experienced commercial drafters take the time to understand your business’s unique services, enabling us to tailor your trading terms to portray variations as “additional works,” strengthening your position with clients.

Resolving Payment Issues

Unpaid invoices pose a significant financial threat to any business, particularly trade-based enterprises. A steady cash flow is crucial for business endurance. We go beyond offering terms and outline a comprehensive process from cost estimation to actionable acceptance of charges, billing procedures, and steps to take if accounts are not paid promptly. Leveraging our experience in debt recovery, we employ precise language to ensure a streamlined debt recovery process on your behalf.

Warranties and Risk Management

Determining accountability in case of product or service issues is essential. Our terms effectively limit your liability and warranties to the maximum extent permissible by law, allowing you to concentrate on billable work instead of resolving unforeseen disputes. For example, if you leave goods in a client’s care during ongoing work, it is essential to establish responsibility for those goods.

To arrange to speak with a lawyer about how to optimise your business’s cash flow potential, contact us today at (08) 8231 1363.