21 October 2021

Term of business explained: different types of ToBs

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in the second of our terms of business explained series we consider the different types of ToBs...



As we mentioned in article one of this terms of business series just over a year ago, we wrote our first article about terms of business. We set out in the article to explain why terms of business were becoming a point of difference for some businesses – legally designed terms of business anyway.

This series, explaining terms of business in more depth, follows up that original blog with more information. In our last article, we looked at 7 things to include in your terms of business, here we consider the different types of ToB…

TERMS-OF-BUSINESS-FLYER

are there different types of terms of business?

As you will have already gathered from our previous terms of business article, there are some clauses that will be standard across all terms of business. However, there are also a number of things that will give rise to differences across sets of terms:

the nature of what you sell.

Terms will vary if you sell goods or services. There are different things that could go wrong and different concerns that your customers/clients will have. Where you are a consultant your client is likely to be worried about confidentiality clauses. If you are selling a shipment of glass, confidentiality is likely to be less of a concern – liability for breakage is probably higher up on the agenda.

where you sell.

Terms will vary not only due to what you sell but whether you sell online or offline. In what country. This can apply to where you offer services too.

leverage.

Sometimes the person you are dealing with will have much stronger negotiating power than you. Often the terms and conditions we receive are ones which we have little power to alter (for example when we apply for a mortgage, we just sign on the dotted line). The same will be true for your terms. Some businesses will feel compelled just to sign – others will have a stronger position and may query your terms and want to make changes. In both cases, your terms should be fair, do what you need them to do, and be easily understandable.

terms of business – legally designed.

Hopefully, that was plenty of food for thought! We will also be considering when you need to update your terms of business and why we feel that legal design can have a hugely beneficial impact on your terms of business!

If you’d like to see how we can help you then please get in touch for a free consultation at onwards@lawboxdesign.com.

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