Reading time: 3 minutes

Generally, the most common concerns for manufacturing businesses is to be paid on time and limit their liability for any risks which are beyond their reasonable control. One of the best ways to protect your interests is to get professionally drafted business terms and conditions. The set of terms and conditions is an essential legal document, as it forms the legal relationship between you and each customer.

This article looks at the typical clauses which go into terms and conditions used by manufacturers with their customers.


Firstly, your customers need to know how they can order from you. Your terms and conditions should clearly set out the order process. For example, is the customer required to place an order online? Or is the customer required to complete a particular order form?It is important that your terms and conditions are clear on the order process, and when an order will be confirmed. This will help avoid disputes between you and your customers.


The Payment clause is a very important section in your terms and conditions. In this section, you need to address when payments are due, whether credit will be granted to ongoing customers, and what the consequences of non-payment are.

A well-drafted payments clause should include a right for you to seek debt recovery services and charge interest for non-payment.


It is good business practice to let your customers know the date they can expect to receive their products and meet these dates!

However, if you use a third party service provider, there may be times where you are unable to meet particular deadlines, at no fault of your own. In these instances, it is important that your terms and conditions have clearly stated that you will not be responsible for the failure of third party service providers where you have taken all reasonable steps to ensure on time delivery. This will help mitigate your liability for late delivery.

Limitation of Liability

Accidents can happen, and perhaps a product that you have created does not meet a particular requirement or causes some sort of damage to your customers.

In such an event, it would help if your terms and conditions comprehensively cover your liability. It is quite common to have in a commercial agreement and/or terms and conditions that, to the extent allowed by law, you will not accept responsibility for any loss which occurs to your customers as a result of your products. This may include loss of profits or harm to third parties. This is, of course, subject to Australian Consumer Law.

The limitation of liability clause is an important one and should be drafted carefully, as manufacturers have particular obligations under the law which cannot be contracted out of. If you are unsure of how to draft a clear and enforceable limitation of liability clause, you should seek the assistance of an experience contract lawyer.


Getting business terms and conditions for your manufacturing business is a great way to ensure you get paid and reduce disputes with your customers.  If you want professionally drafted and tailored business terms to protect your business to the greatest extent possible under Australian law, speak to one of our contract lawyers today.



Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
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
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards