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As an online store, you sell a variety of goods or services to customers or businesses over the Internet. If you sell to customers, you become a business-to-business eCommerce store, and if to consumers, you become a business-to-consumer eCommerce store. Before selling through your website, you should prepare legal agreements with your customers. This article will explain what the goods and services agreement is and why your eCommerce business operating in the UK needs it.
What is a Goods and Services Agreement?
A goods and services agreement is a contract between a business and its customer. Among other terms, it would outline the following:
- the good or service on offer;
- the price;
- terms and conditions of the sale; and
- how your business will deliver the good or provide the service.
Your eCommerce business can create a goods and services agreement as a direct contract between your online business and customers. You might request for both parties to sign a written contract.
What is in a Goods and Services Agreement?
Your eCommerce goods and services agreement should clearly state what your customers agree to when buying goods or services online. It provides transparency to your customers and protects you both from potential issues that may arise.
Examples of Terms
Your goods and services agreement may include:
- details of the products and services you offer, accurately describing the goods you provide under consumer law to clarify your scope of supply;
- how you will supply goods and perform services;
- how your online customers can pay for goods and services;
- delivery details;
- whether there are penalties if your customers miss or make late payments;
- what happens if the goods do not meet your customers’ expectations;
- what happens if you poorly perform your services and your obligations to provide a remedy;
- liability if sales go wrong, and what falls within your business’ liability;
- how returns work;
- how to get a refund;
- consumer protection laws, such as the right of customers to have up to 14 days to change their mind about purchasing the goods;
- any goodwill gesture that goes over and above legal requirements;
- when your customers do not have a right to change their mind about their purchase, such as for the services you provide once you have completed these; and
- your online consumers’ right to terminate the goods and services agreement.
This guide sets out how to set up, finance and grow an online business in the UK.
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Key Takeaways
As an eCommerce business, you need to establish goods and services agreements with your online customers. These agreements, also known as terms and conditions, are vital for selling goods and services online. A goods and service agreement is a legal contract that outlines what your business provides and establishes the legal relationship between you and your customers.
Here’s why these agreements matter:
- they detail the scope of supply and payment specifics;
- they outline your obligations under consumer law, ensuring transparency and, clarity; and
- they specify the consequences if you fail to provide services with reasonable care and skill or if the goods are not fit for purpose or of satisfactory quality.
By having clear agreements in place, you protect both your business and your customers, fostering trust and ensuring smooth transactions.
If you need help drafting a goods and services agreement, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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