Download this free Supplier Contracts Checklist to ensure your contracts will meet your business\u2019 needs.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n When delivering products or services to customers, contractual terms are crucial. As a supplier, a robust contract to govern the sale of your products or services can:<\/p>\n\n\n\n Standard terms and conditions are legal terms included in your business contract. Often, a business will issue standard terms and conditions to all customers. Using standard terms can offer a speedy approach to agreeing on a contract by saving you the time you would otherwise spend negotiating a bespoke contract.<\/p>\n\n\n\n Standard terms and conditions should cover essential matters, including:<\/span><\/p>\n Standard terms and conditions are usually non-negotiable. In other words, suppliers tend to offer their services on a \u2018take it or leave it\u2019 basis. However, customers may try to negotiate your standard terms to protect their business interests. We explain three critical legal issues to consider when a customer asks you to vary your standard terms and conditions:<\/p>\n\n\n\n There are several reasons why a customer may ask to vary your standard terms. For example, the customer may have bespoke requirements not covered in your standard terms. In this case, they may request specific changes to your standard terms accordingly.<\/p>\n\n\n\n The customer might also want to negotiate specific changes to some commercial terms. For example, they may request a more extended period to pay you. Alternatively, they may request a notice period to terminate the agreement<\/a>. Sometimes, the customer may request a limitation of liability clause, which limits their liability if they breach the contract.<\/p>\n\n\n\n In any event, you should consider the associated risks for your business when a customer requests changes to your standard terms and conditions. It may be that some of the customer\u2019s requests are legitimate and reflect reasonable changes to the contract terms, in which case you should consider accepting them.<\/p>\n\n\n\n You must take time to understand all the requested amendments to your original contract terms and the implications. For example, if the customer requests changes to your obligations under the contract \u2013 will you be able to fulfil them? Ultimately, you should be comfortable with the changes proposed before accepting what the customer requests.<\/p>\n\n\n\n Lawyers often draft standard terms and conditions heavily in favour of the supplier rather than to protect both parties. Naturally, customers will try to negotiate terms and conditions to protect themselves. As a result, you should take a pragmatic view of negotiations. Whilst legal terms are critical, it is also important to show customers you can compromise and accommodate their requests where possible.<\/p>\n\n\n\n If the customer also has a legal team, engaging lawyers can help speed up the negotiation process. A lawyer can also help quickly prepare revised terms for the customer’s approval based on your agreed changes. This can help you reach an agreement with the customer more efficiently and finalise the contract terms to each party’s satisfaction.<\/p>\n\n\n\n In today\u2019s business world, customers have significant bargaining power and tend to shop around. A customer will be looking for a supplier with whom they can build good long-term working relationships.<\/p>\n\n\n\n Being reasonable and open to negotiations to your terms and conditions may make you more likely to win more business. Successful negotiations can build trust with potential customers and show them you are willing to compromise. If you refuse to accept negotiations with a customer, they may decide not to sign your contract and go elsewhere. <\/p>\n\n\n\n Therefore, keeping an open mind and accommodating customer requests where possible may help you secure more business in the long term. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nWhy Use Standard Terms?<\/h2>\n\n\n\n
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Commercial Considerations When Varying Standard Terms and Conditions<\/h2>\n\n\n\n
1. Risk Exposure<\/h3>\n\n\n\n
2. Negotiation <\/h3>\n\n\n\n
3. Loss of Business<\/h3>\n\n\n\n
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