Reading time: 3 minutes

Your Sale of Goods Terms and Conditions set out the terms on which you will provide goods to your customers. Usually these are attached to the purchase order you provide in hard copy to the person or company purchasing your goods.

Goods, Orders and Prices

Your goods, orders and prices clause should set out how orders will be received and processed by you and that you have discretion to complete or reject orders as you see fit, based on your ability to supply the goods or the availability of products.

You should set out that it is the customer’s responsibility to confirm that their order is correct and that they have not ordered the wrong product, such as the wrong colour or size of product. Depending on how the product is purchased, you may provide an order number when they order online, or a purchase order when they order from your warehouse or showroom. You should set out in the terms the point at which a binding agreement will come into effect between you and your customers.

Payments Clause

Your payments clause should set out whether you require upfront payment for the goods, or whether you will provide an invoice to customers to pay within a certain period. You should also set out whether payment of goods might be available on credit.

Make sure to detail whether the price set out in the purchase order will or will not include delivery and insurance charges, and if it includes installation costs. You should also set out that if the customer’s payment is not able to be successfully processed, or if credit is not successfully approved, then you may cancel their order.

This clause should also set out whether you will charge interest on unpaid amounts. The standard rate is between 1.5% – 2% per month, on any amounts unpaid. Make sure the interest rate is not too high to avoid incurring a penalty, as the fees charged need to be a genuine pre-estimate of loss. You should set out that if the payments or invoices are unpaid for 30 days, you have the right to engage debt collection services for the collection of unpaid and undisputed debt, and that the customer should cover the cost of undertaking this action.


A comprehensive Sale of Goods Terms and Conditions, which include a well drafted goods, orders and payments clause, can reduce issues with customers in the future. At LegalVision, we provide our clients with this legal document, as well as a variety of other agreements, many of which you may need for your business. Some of these include a Privacy Policy and Website Terms of Use. So if you’re in need of legal advice, contact LegalVision on 1300 544 755 and our online solicitors will be able to assist!


How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

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