Your Sale of Goods Terms and Conditions set out the terms on which you will provide goods to customers and is usually included with each purchase order and invoice.

Consumer Law and Consumer Guarantees

Your consumer law, return, refund and exchange policy clause sets out the warranties and guarantees that you are required to provide under the Australian Consumer Law (ACL). Under the ACL, the following notice should be included in all Sale of Goods Terms and Conditions:

“Our goods come with warranties and guarantees that cannot be excluded under the Australian Consumer Law (Consumer Guarantees). You are entitled to a replacement or a refund for a major failure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure.”

Under this clause you should exclude warranties and guarantees, subject to the ACL. Depending on the nature of your business, however, you may wish to include detailed additional warranties. You should set out the terms of the additional warranty, clarifying the period during which it applies, the goods to which it applies, as well as detailed explanation of how a claim can be processed and in what situations you will not provide a warranty.


You should also include a detailed disclaimer to make it clear to the customers that it is their responsibility to ensure that all goods are appropriate for their use and the customer’s situation.

Repair, Replacement or Refund

In relation to you providing a repair, replacement or a refund you should set out the process by which the customer can seek a remedy and the requirements they must meet. For example, are they required to provide you with evidence of faulty goods and a proof of purchase such as original receipt or purchase order. You should also set out how a refund will be provided, i.e. will it only be provided if the customer is entitled to a refund per your requirements? And, if so, will the refund be processed using the same payment method that was used to purchase the goods.

If a customer would like to return a product, you should set out how you require products to be returned to you. For example, do they need to repackage the goods using the package you sent to them? Within what period, will you require the goods to be returned to you? You should also set out whether the goods must be returned by the customer or if you will pay for the products to be collected by your business.

If your products are able to be installed, then you should have a clause which sets out that if products have been installed or the customer has attempted to install the product, then it cannot be returned. You should also include a clause that if the goods are damaged in the customer’s possession, you will not be responsible for repair, replacement or refund of the goods.


It is important to include a well drafted Sale of Goods Terms and Conditions to comply with the ACL and your obligations. If you would like us to draft your Sale of Goods Terms and Conditions, the lawyers at LegalVision have extensive experience in this area. So if you’re in need of legal advice, contact us on 1300 544 755 and speak with one of our experienced consumer law solicitors today.

Edith Moss
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