When you are selling a product you have the price advertised in neon lights (or in your price list). Then, the shipping costs down the bottom of the page. But what about the other 10 to 15 key points that are important to the sale? Like, what happens if you don't get paid? Or, if the customer wants to cancel an order or return the goods? What if the goods are defective? What's the seller's liability?
That's where the Terms and Conditions come in. These are the general over arching rules for a supply arrangement. They cover the legal rights and obligations between a buyer and seller. That is, beyond the key terms such as price and quantity.
In a real world setting, you can expect to find Terms & Conditions printed on the back of an invoice. In the virtual world of ecommerce, these will live on a page on the seller's website.
When you are wholesaling, you'll need a special set of terms and conditions. This is because the issues are different from a retail sale. The main difference being that customer's will often pay on credit and you need to ensure you get paid.
If you are supplying products on a wholesale basis, you should require your customers to accept your terms and conditions so you can ensure you are protected.
Specifically, your terms and conditions should give you the right to retain ownership in your products until you are paid in full, charge interest on late payments and limit your liability.
You can also make sure that any disputes about the product you are supplying are dealt with in your jurisdiction. That is, by the Courts in the State or Territory of Australia where your business is based. Otherwise, you could be forced to spend money defending a legal action on the other side of the country.
Moreover, well drafted terms and conditions will set out your expectations of your customers and minimise the risk of disputes, so you can get on with business and make more money with less hassle.
Australia has recently updated its laws such as the Australian Consumer Laws and Unfair Contracts legislation. If you are using outdated terms and conditions (or worse still terms you copied from another wholesaler or a foreign company) your business will likely be in breach of the law.
You should act now to ensure you comply with current Australian laws. Our Terms and Conditions Template for a Wholesale Supplier is update to date.
