What are terms and conditions of sale?
Terms and conditions of sale, often abbreviated as T&Cs, are the stipulations and guidelines under which a product or service is sold.
They define the rights, responsibilities, and obligations of both the seller and the buyer. These terms cover aspects like product details, pricing, delivery timelines, return policies, warranties, and dispute resolution mechanisms.
How do terms and conditions of sale work?
Once both parties— the seller and the buyer— agree upon and sign the terms and conditions, they become legally binding. These terms then govern the sales relationship, outlining the duties and rights of both parties.
For instance, the T&Cs will specify the product or service details, the agreed price, and the conditions under which a return or refund might be possible.
At their essence, terms and conditions serve as a roadmap for the sales relationship, offering a transparent framework for both parties to interact.
If either side fails to uphold their end of the agreement, the other can seek remedies, which might include legal action.
When do you need to use terms and conditions of sale?
Terms and conditions should be in place whenever a business sells a product or service. Whether it’s a one-time sale or a long-term service contract, having clear T&Cs ensures both parties understand their obligations and rights.
They are especially crucial for significant sales or long-term business relationships to minimize potential disputes or misunderstandings.
What should terms and conditions of sale include?
- Identification of parties. Clearly state the seller and the buyer, including their legal names, business structures, and primary places of business.
- Description of goods/services. Detail the specific products or services being sold, including any relevant specifications or features.
- Price and payment terms. Clearly specify the price and any associated taxes or fees. Outline payment terms, including due dates and accepted payment methods.
- Delivery terms. Detail the delivery method, timeline, location, and who bears the risk during transit.
- Return and refund policy. Outline the conditions under which returns are accepted and refunds are issued.
- Warranties and guarantees. Specify any warranties or guarantees offered with the product or service.
- Limitation of liability. Define any limitations on the seller’s liability concerning the product or service.
- Dispute resolution. Specify the methods for resolving disputes, whether through mediation, arbitration, or litigation.
- Governing law. State the jurisdiction governing the T&Cs and where any legal proceedings would take place.
- Amendments. Outline the process for making changes to the terms and conditions.
Traditional management of terms and conditions of sale
Traditionally, sales teams manage terms and conditions using various tools:
- Draft the T&Cs in word processors like Microsoft Word.
- Send the document for internal review via communication platforms.
- Share updated versions with customers via email.
- Negotiate terms with revisions in the document.
- Convert the final version to PDF.
- Use eSigning tools for formal agreement.
- Store the signed document in shared drives.
This process can be cumbersome and disjointed, leading to inefficiencies. Modern contract management platforms, like Juro, offer a streamlined approach, allowing businesses to manage their terms and conditions from start to finish within a single platform.
Features like automated templates, in-platform commenting, mobile-responsive eSignature, and a secure contract repository make the process seamless and efficient.
