Terms and conditions

Also called T&Cs, Terms of business, Terms of sale

The contract you are actually trading on, whether or not you wrote one.

What it means

Your terms and conditions set out what you will do, what the customer will do, when payment is due, what happens if something goes wrong, and who carries which risk.

If you do not supply your own, the contract is made up of whatever was said, whatever the customer's terms say, and the default rules supplied by law. That combination is rarely in your favour.

Why it matters

Almost every commercial dispute a small business has turns on a question the terms should have answered: when does payment become due, who owns the work in progress, what counts as acceptance, what happens when the customer changes their mind halfway through.

They also decide the "battle of the forms" — where both sides send their own terms, the ones that generally win are the last set sent before performance began.

What it looks like in practice

The clauses that earn their keep: payment terms and interest, scope and what is excluded, a change-control process, ownership of intellectual property, limitation of liability, and termination.

Get them onto the order, not just onto the website. Terms nobody was shown before the contract was made may not be incorporated at all.

What to watch out for

Selling to consumers. Consumer law overrides much of what you might write, and unfair terms are simply unenforceable — different drafting is required.

Unlimited liability by omission. If you do not cap your liability, it is not capped.

Where to get proper advice

A solicitor for a set drafted around what you actually sell. Templates are a starting point and are frequently wrong about the one thing your business specifically risks.