One of the most important documents for a business are its terms and conditions (T&Cs). Many feel that they simply contain legal jargon, but they are actually so much more. They offer protection to the business, build trust and can help to avoid unnecessary disputes.
Terms and conditions will set out the rules of how a business will operate and how it interacts with its customers. They will identify areas of responsibility; what customers can expect and what will happen if things do go wrong. Items such as services, timeframes, payment terms, delivery policies, cancellation policies and refunds should be included.
Our top 5 reasons why terms and conditions are so important are:
- Business protection
T&Cs will set clear boundaries. They will outline the obligations made to customer and will also identify the expectations expected from the customers.
- Prevent misunderstandings
T&Cs remove confusion. They will clearly define items such as what is included in the price, how the product or service is going to be delivered and what will happen if something does go wrong.
- Compliance with UK law
There are some very strict UK consumer laws, especially regarding the purchasing of products and services online. T&Cs will help to comply with regulations such as the Consumer Rights Act 2015 and Distance Selling Regulations.
- Build trust
If customers see clear, fair and professional T&Cs then they will have peace of mind that the purchase is a fair one. This builds trust and fosters good business relationships.
- Saves time and conflict
By having T&Cs in place, a business can react quickly to any potential issues and can immediately refer customers to the document for guidance. This can resolve problems with little to no disruption for either party.
To ensure that terms and conditions are comprehensive there are a number of common sections that should be included.
- Use definitions such as “we”, “you” and services to avoid ambiguity.
- Show how prices are calculated, what payment terms are accepted and how payment should be made.
- Demonstrate how products or services will be delivered and, where relevant, explain the work with expected timelines.
- Be clear regarding your policy on returns, refunds and cancellations, ensure there is no ambiguity.
- Outline limitations of liability showing clarity in terms of what the business is not responsible for.
- Explain how disputes will be handled and what the complaints process is.
- Mention that the T&Cs are governed by UK law, standard practice for a business.
In summary, always aim to keep the T&Cs clear and simple, avoid complicated legal jargon and make it is easy for customers to read. Make them accessible for all. A business should not copy T&Cs from others, they should be bespoke and relevant. The best recommendation would be to seek legal advice and ensure that T&Cs are reviewed and approved by a legal professional.
Having T&Cs is more than just a tick box exercise, it protects a business, builds trust with customers and ensures a good operation.
Should you have any questions or would like any advice in drafting terms and conditions then our team would be very happy to help. Please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
You can also book a free 20-minute call with Yarka – https://calendly.com/yarka-ssa/20min
