Relationships with your Debtors – Tips on avoiding bad debts - Make it all enforceable
Our final blog in this series will focus on the benefit of tying together the elements discussed in our previous tips in a comprehensive set of Terms and Conditions.
A business’ standard Terms and Conditions should at a minimum cover off on the following:
- The manner in which the Terms and Conditions can be accepted (for example by placing an order for goods and services);
- How the price for the goods and/or services will be determined;
- Whether a deposit is required and if so, how much;
- Payment terms;
- The point at which delivery of the goods and/or services will be deemed to have occurred;
- The point at which title and risk in the goods and/or services will pass;
- The consequences of default in payment (such as interest and recovery of costs);
- The rights that the business will have in the goods and/or services as an unpaid seller
- The manner in which orders can be cancelled and the consequences of cancellation;
- The form(s) of security to be provided.
Once you have your Terms and Conditions in place, it is essential that you stick to them and act quickly to enforce your rights when necessary.
While the ideal situation would be to never have to chase customers for payment, in reality every business finds itself having to do so from time to time.
A properly drafted set of Terms and Conditions, in conjunction with an appropriate customer details form, significantly improves a business’ chances of succeeding where formal debt recovery proceedings are required. Having the right documents in place typically makes the recovery process quicker and cheaper than would otherwise be the case.
We specialise in providing clarity and confidence to business operators in their legal relationships with their customers. If you require a set of Terms and Conditions, or would like your existing Terms and Conditions reviewed, we can help. Contact us and benefit from our knowledge and experience.Back