Eight Steps to Writing Terms and Conditions for Your Business

Karen Curinga reports:

"Business terms and conditions set the contract foundation between you and your customer...[A] terms-and-conditions document is essential. It protects your business, defines your procedures, limits your liability and explains what you have agreed to do. Special provisions may be appropriate to include in your terms and conditions depending on your business, but in many instances simply including a few basic sections creates an effective, but simple document that is easy for the customer to understand and meets your business needs...Write a terms-and-conditions section addressing price. State clearly what the price does or doesn't include, such as duties or taxes...Provide a paragraph defining terms or words used that might cause customer confusion. For example, use of the word 'goods' may refer to both product and services in your business. Make it clear what you are selling, and keep terminology simple and familiar...Offer a privacy statement indicating you are committed to protecting the customer’s privacy. Let him know that his information is considered confidential and will not be sold, shared or rented to any third party...Describe what quality means to your company...Establish specific directions on acceptable methods of payment. Include information clearly stating when payment is due in full...Indicate any information on late payments, interest charged and returned checks, if appropriate. Fully cover all aspects of shipping, such as cost, insurance, freight charges and returns...Set in writing circumstances under which price changes may occur and how the customer receives the information. For a repeat service business, provide information regarding periodic price increases and how clients are notified...Provide a warranty in writing and describe how it is handled...Indicate whether repair or replacement free of charge is included during the warranty period. Be specific on the limit of your liability...Establish the method used to resolve problems, such as mediation. It is far less costly, time[-]consuming and stressful than litigation."