Standard terms and conditions—advantages and disadvantages

Published by a LexisNexis Commercial expert

Practice notes

Standard terms and conditions—advantages and disadvantages

Published by a LexisNexis Commercial expert

Practice notes

This Practice Note considers why businesses use standard terms and conditions (T&C, Ts&Cs, T&Cs), when trading with either other businesses (business to business or B2B transactions) or consumers (business to consumer or B2C transactions). It will assist the commercial practitioner in analysing the client's position and advising whether standard terms and conditions are appropriate for the client.

Purpose of standard terms and conditions

Businesses use standard terms and conditions for many reasons, including:

•
speed
•
consistency
•
cost
•
allocation of risk

It is essential that businesses understand the need to enter into written agreements where possible and to adopt standard written terms that are pertinent to their particular business or trade.

Importance of standard terms and conditions

Standard terms and conditions, if used correctly and duly incorporated, are fundamental to income generation. They should form the basis of all contracts and provide a framework for day-to-day operations as well as protection in contractual matters. However, businesses often overlook their standard terms and focus on generating revenue.

Individuals within a business may find themselves