Reading time: 5 minutes

When starting a new business, there is a never-ending list of tasks to complete. Finalising your products and then marketing them are usually at the top of that list. But, ensuring that your sales terms and conditions are in place is a crucial factor in establishing arrangements with your customers. Your sales terms and conditions play an essential role in protecting your business and ensuring that both you and your customers are aware of each other’s:

  • rights;
  • roles; and
  • responsibilities. 

This article will outline some of the key clauses that you should include in your sales terms and conditions.

Products and Orders

Your sales terms and conditions should outline how a customer can request to purchase your products and how your business will handle the request. Your clause about orders should address:

  • where you list the products you have on offer;
  • how and why you may accept or reject and order. For example, accepting an order may depend on the availability of your products;
  • who is responsible for verifying the details of the order. For example, you may wish to outline that your customer cannot cancel their order if they enter the incorrect details; and
  • how your customers can track the progress of their order.

Payment

Sales terms and conditions should always include a clause relating to payment. It should specify:

  • how your customers can make payment;
  • how you receive payments; 
  • when you will not accept or allow payments;
  • that your customer agrees to pay the price that you advertised plus any additional charges, such as delivery; and
  • the currency. 

Delivery

Having an efficient and reliable delivery system in place ensures that your customers receive their products on time. This will be a massive factor in the success of your business. Your delivery clause should cover the following information.

Location

You need to specify where you deliver your product. 

For example, you should state whether you deliver your products Australia wide, or only to certain states or metropolitan areas. You should also note if there is a pickup option available.

Cost

Delivery incurs fees, and it is vital to note whether or not you will charge your customers for delivery. 

For example, you may wish to provide your customers with free delivery if their order is over a certain value. 

Timing You should provide your customers with an estimated delivery time frame which is based on your delivery company’s information. These time frames may depend on how far your customer is based from your warehouse. You should also outline what the delivery times will be during holiday periods.
Liability

You should specify that your customers are responsible for the details they enter for delivery. This minimises your legal responsibility if, for example, your customer enters a wrong delivery address. 

You should also note that your delivery company is responsible for ensuring your products are delivered to your customers.

Cancellation 

If business is booming, you may run of stock to continue servicing your orders. Having a clause that addresses what happens if there is no stock is crucial in ensuring your customers are aware of your processes. In your cancellation clause, you should outline:

  • that orders are subject to availability. You may also want to describe that you aim to ensure stock is regularly replenished and updated; and
  • how you will deal with a delay. This may involve sending your customers a similar product, or offering a cancellation and refund. 

Returns, Refunds & Exchanges 

The Australian Consumer Law (ACL) outlines the different guarantees and protections of consumers. Under the ACL, your customers have the right to ask you for a refund, repair or replacement if your product does not meet its guarantees under the ACL. It is crucial that you comply with these guarantees, so that you do not get in trouble with the Australian Competition and Consumer Commission.

Some of the ACL guarantees include that your products must:

  • be of acceptable quality;
  • match the descriptions made in your advertising; and 
  • meet any impressions you have made on their performance, condition and quality.

For your sales terms and conditions to be in line with the ACL, you should outline the process of how your customers may return, refund and exchange your products. This clause should clearly set out:

  • that your customers must provide you with a receipt proving they purchased your product that they would like to return, refund or exchange;
  • the time period during which customers can make returns;
  • which products that can be exchanged or refunded;
  • if you run an online business, who is responsible for the cost of sending a product back to you;
  • that you require evidence of any defects if the customer is claiming your product is defective; and
  • any warranties.

Key Takeaways

Your sales terms and conditions are an essential legal document that should clearly set out the arrangement between your business and your customers. A well-drafted set of terms and conditions will minimise any legal risks and future disputes with customers arising. If you have any questions or need assistance with drafting sales terms and conditions, contact LegalVision’s contract lawyers on 1300 544 755 or fill out the form on this page.

Webinars

Redundancies and Restructuring: Understanding Your Employer Obligations

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

Online
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

Online
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

Online
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

Online
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

Online
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

Online
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

Online
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

Online
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

Casey D'Souza
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