Businesses are usually bound by two groups of trading terms. The ones from their suppliers and the ones between the business and their customers. You should ensure that the trading terms that you are bound by do not contain unfavourable terms that puts your business at risk of financial loss.
If you supply goods on credit, check that you hold security for the payment of your account by:
- having properly drafted retention of title clause in your terms and conditions that are signed by your customer; and
- having systems in place to register your interest over the goods you supply to your customer.
If you supply goods for personal, domestic or household use or consumption, beware of the new unfair contract terms legislation that came into existence in November 2016. Any unfair contract terms could be declared void and unenforceable by the Courts.