Terms & Conditions

Contractual terms, and specifically terms and conditions, exist to manage the risk for the buyer. There is a rule book setting out how the buyer and the seller are going to operate.

T&C’s are the standard terms and conditions an organisation develops that protect the business from risks within the contract and identify who is responsible if things go wrong. These form the basis of every contract and then they are made specific to each contract by adding express terms as referred to below.

Contractual terms should be negotiated and agreed before the contract is signed.

There are two types of terms within contracts:

• Express terms
• Implied terms

Express terms can be anything that the two parties have agreed during contract negotiations. These terms are spelled out in the contract. Examples of express terms include:

• Delivery details
• KPIs
• Order schedules
• Payments terms
• Price
• Quality
• Quantity
• Specifications

Implied terms do not need to be spelled out in the contract because they are part of common law. Implied terms include legislation and regulations.

This graph explains how explicit terms and implied terms fit within an agreement.