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  • customer contract
    18
    Sep

    PROTECTING YOUR LEGAL RIGHTS – Written Contracts For Small Business

    PROTECTING YOUR LEGAL RIGHTS – Written Contracts For Small Business

    Many small businesses supply goods and services to clients without any written terms and conditions.

    Often, it is only when a customer fails to pay and costly litigation is commenced, that a business owner realises the importance of having a written contract.

    We strongly recommend that you have a written contract for all your customers.

    What should be included in a customer contract?

    A customer contract should set out all the terms and conditions of the sale or supply.

    Matters to consider including in a customer contract include:

    • Your rate of charging.
    • The price of services, goods or parts.
    • When payment must be made by.
    • What happens when payment is not made by the due date (for example, interest, legal costs, lien over goods).
    • The procedure where there is a dispute (for example – over quality, service or delay).
    • Obtaining a personal guarantee where the customer is a company.
    • Any right of set-off.

    Note: A contract should not be unfair to one party. A contract that is unfair or unconscionable may be set aside by a court.

    We recommend that you consult a suitably skilled and experienced lawyer to prepare your customer contracts.

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