Reading time: 3 minutes

Whether you are just starting out on your journey or are simply looking to update your existing terms of service, your terms and conditions are critical to your business’ success. The terms of service you adopt will define the legal relationship between your business and its clients, and will determine the parameters as well as your rights and obligations. A poorly drafted set of terms and conditions may be unenforceable and could potentially expose you to liability.

1. Defining Your Business Offering

At the heart of any well-drafted terms of service is a comprehensive definition of your business offering. Your terms and conditions should state, with precision (as far as practicable), the goods and/or services that you provide. In defining your business offering, it may be useful to consider:

  • Mode of acceptance;
  • Express exclusions;
  • Pre-requisites to access and/or use;
  • Restrictions to access and/or use;
  • Mode of delivery;
  • Your obligations in providing the goods and/or services; and
  • The recipient’s reporting or other obligations, if any.

2. Pricing, Invoicing, and Payment

A businesses’ ability to generate and maintain adequate levels of cash flow links directly to its capacity to obtain prompt payment for services and/or goods provided. Accordingly, getting paid on time is essential to the continued longevity of your business. Towards this end, the terms of service you employ should clearly set out:

  • The costs associated with your business offering;
  • Payment terms;
  • The method of payment;
  • Your rights upon default; and
  • The debt recovery mechanisms you employ.

3. Intellectual Property and Confidential Information

If in providing your business offering you will make available materials which you own, or someone has licensed to you, it’s essential that your terms of service address the use that your client can make of your intellectual property. As such, your terms of service should clearly state:

  • That you own the intellectual property rights in the materials provided;
  • Whether use of the materials grants the recipient a licence, and if so on what terms; and
  • Whether you purport to assign any intellectual property rights to the recipient, and if so upon what terms.

By the same token, if you provide or collect confidential information, it may be appropriate to include a non-disclosure clause in your terms of service. However, the suitability of such a clause will depend upon the facts of your particular case.

4. Termination

Your terms of service should include a termination clause that defines the circumstances under which either party to the agreement may end the relationship. Terms of service that fail to address termination are an invitation for disputes. When drafting such a clause, have consideration to the following:

  • The circumstances under which the contract may be terminated;
  • The notice period, if any; and
  • The ancillary rights and obligations of each party upon default.


If you need assistance drafting your terms of service, let our business lawyers know on 1300 544 755. 


New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer