PROTECTING YOUR LEGAL RIGHTS – Written Contracts For Small Business

Many small businesses supply goods and services to clients without any written terms and conditions.
Often, it is only when a customer fails to pay and costly litigation is commenced, that a business owner realises the importance of having a written contract.
We strongly recommend that you have a written contract for all your customers.

A customer contract should set out all the terms and conditions of the sale or supply.

Matters to consider including in a customer contract include:

Your rate of charging.
The price of services, goods or parts.
When payment must be made by.
What happens when payment is not made by the due date (for example, interest, legal costs, lien over goods).
The procedure where there is a dispute (for example – over quality, service or delay).
Obtaining a personal guarantee where the customer is a company.
Any right of set-off.

Note: A contract should not be unfair to one party. A contract that is unfair or unconscionable may be set aside by a court.

We recommend that you consult a suitably skilled and experienced lawyer to prepare your customer contracts.

By Namrata Singh | November 16th, 2016