Furniture Terms And Conditions: What To Include

Ava runs a small furniture studio in Melbourne. A customer orders a custom oak dining table, pays a deposit, approves the drawings, then asks to change the size after Ava has already ordered the timber.

That kind of situation is very normal in a furniture business. You're not just selling a product off the shelf. You're often measuring, designing, sourcing materials, building to order, delivering into tricky spaces and managing customer expectations along the way.

Good furniture terms and conditions help you set those expectations early. They can make deposits, custom orders, delivery, defects and change requests much clearer, so a misunderstanding doesn't turn into an unpaid invoice or an unhappy customer.

What Should Furniture Terms And Conditions Cover?

Your furniture terms and conditions should cover the full customer journey, from quote to final delivery and after-sales support. Because furniture making is often a product-and-service hybrid, your terms need to deal with both the physical item and the work that goes into designing or making it.

At a minimum, your terms should cover:

• Quotes and scope: what is included, what is excluded and how long the quote stays valid.
• Measurements and approvals: who provides measurements, when drawings or samples are approved and what happens if measurements are wrong.
• Deposits and payment milestones: when the customer pays, what part of the deposit covers and what happens if payment is late.
• Custom orders: when an order becomes locked in, whether the customer can cancel and what costs are recoverable.
• Change requests: how changes are requested, quoted, approved and scheduled.
• Delivery and installation: access requirements, delivery windows, risk, failed delivery fees and installation limits.
• Defects, warranties and returns: how customers report issues and how your legal obligations under the Australian Consumer Law apply.

These terms can sit on your website, quote, order form, terms of sale or customer contract. The main thing is that the customer sees and accepts them before you start work or take payment.

For higher-value bespoke work, a signed order form or custom furniture contract is usually better than relying only on website terms. It gives you a clearer record of the scope, price and approvals.

Can You Ask For A Deposit On Bespoke Furniture?

Yes, you can usually ask for a deposit, as long as your deposit terms are clear and fair. There's no fixed legal deposit percentage for furniture businesses in Australia, so the right amount depends on your materials, labour, lead time and risk.

For bespoke work, deposits are often used to cover:

• timber, fabric, hardware and other materials ordered for that job
• design time, drawings, samples or site visits
• workshop time reserved for the project
• supplier deposits you need to pay upfront

The key issue is what happens if the customer cancels. A term saying all deposits are non-refundable in every situation can be risky, especially for consumer customers or standard form small business contracts.

Under the Australian Consumer Law, you can't use your terms to take away a customer's consumer guarantee rights. Also, unfair contract terms in standard form consumer and small business contracts can be void, and since 9 November 2023, businesses can face penalties for using or relying on unfair terms.

A fairer approach is to explain that the deposit may be used to cover costs you have already incurred and reasonable losses caused by cancellation.

Example: A Bespoke Dining Table Deposit

Ava quotes $4,800 for a custom dining table. Her terms require a 40% deposit, so the customer pays $1,920.

After approving the design, the customer cancels. Ava has already ordered $1,400 of timber and spent $350 on design and workshop preparation. Her terms say she can deduct reasonable costs already incurred and refund any balance. Ava keeps $1,750 and refunds $170.

Without clear terms, Ava may struggle to show why she was entitled to keep part of the deposit.

What Happens If Measurements, Materials Or Timelines Change?

It depends on who caused the change and what your terms say. Custom furniture projects often move because of measurements, material availability, supplier delays or customer changes, so your terms should give you a practical process for dealing with this.

Start with measurements. If the customer provides measurements, your terms should say they're responsible for their accuracy. If you attend site and measure, your quote should clarify what you measured and any assumptions you made.

For example, a built-in bookshelf may need allowances for uneven walls, skirting boards, power points or ceiling heights. If those details aren't checked early, you could end up absorbing extra labour or remaking parts.

Your terms should also deal with materials. Timber is a natural product, so colour, grain and movement can vary. Upholstery fabrics may have dye lot differences. Imported components may be delayed or discontinued. You can explain these limits without overpromising perfection.

For timelines, avoid promising a fixed completion date unless you're confident you can meet it. A better approach is to give an estimated lead time and list things that may affect it, such as:

• late customer approvals
• supplier delays
• changes to the design or dimensions
• site access issues
• delays in receiving progress payments

Change requests should be in writing. Your terms can say that changes only take effect once you confirm the revised price and timeline, and the customer accepts them. This helps stop casual text messages from quietly expanding the job.

How Should You Handle Delivery, Installation And Risk?

You should handle delivery and installation by spelling out who does what, when risk passes and what happens if the site isn't ready. Furniture disputes often happen at the final step, when expectations about delivery don't match the reality of the space.

Your terms should say whether delivery is included in the price or charged separately. If you charge extra for regional delivery, stair carries, difficult access or after-hours delivery, say that upfront.

You should also ask the customer to make sure:

• there's safe and reasonable access for delivery
• lifts, loading docks or parking are booked where needed
• doorways, stairwells and hallways can fit the item
• the site is ready for installation
• someone authorised is available to accept delivery

Risk is another key point. For example, your terms might say risk passes to the customer when the item is delivered, collected or left at an agreed location. If you offer installation, risk may pass after installation is completed, except for damage caused by the customer or the site conditions.

If you sell to commercial customers on account, your terms of trade may also need retention of title terms. These say ownership stays with you until the customer pays in full. For some commercial supply arrangements, you may need to consider registration under the Personal Property Securities Act 2009 to better protect your interest if the customer becomes insolvent.

Delivery terms don't need to be harsh. They just need to make the practical details clear before your team is standing outside a property with a heavy cabinet and nowhere to unload it.

What If A Customer Says The Furniture Is Defective?

You need to respond promptly and check whether the issue is a true defect, a natural variation, damage after delivery or a change of mind. The Australian Consumer Law gives customers consumer guarantees that apply automatically, even if your terms say something different.

For furniture, these guarantees can include that goods are of acceptable quality, fit for any purpose the customer made known, match their description or sample, and have spare parts or repairs available for a reasonable time where relevant. Services, such as installation, must be provided with due care and skill and within a reasonable time if no time is agreed.

Your terms can't say no refunds under any circumstances. They also can't limit rights the customer has under the Australian Consumer Law.

What you can do is create a clear defects process. Ask customers to:

• inspect the item on delivery or collection where possible
• notify you of any issue as soon as reasonably practicable
• send photos, videos and a description of the problem
• avoid using the item if use could make the issue worse
• allow you a reasonable opportunity to inspect and assess the item

Your response will depend on the problem. If there's a minor failure, you may be able to repair or replace the item within a reasonable time. If there's a major failure, the customer may be entitled to reject the goods and choose a refund or replacement.

Your terms can also explain what isn't a defect, such as natural timber movement, minor grain variation, fabric shading, fair wear and tear, misuse, poor maintenance or damage caused by improper installation by someone else. Make sure these exclusions are accurate and don't cut across consumer guarantees.

If you offer a written warranty against defects, there are specific Australian Consumer Law wording requirements. It's worth getting that wording checked before you publish it.

Furniture Terms And Conditions Template: What To Include

A template can be a useful starting point, but it shouldn't be treated as a finished document. Furniture businesses vary a lot, so your terms should be tailored to how you quote, design, manufacture, deliver and deal with defects.

Here is a practical outline you can use when preparing furniture terms and conditions:

1. Parties: name your business correctly, including your legal entity, ABN or ACN and trading name.
2. Products And Services: describe whether you supply ready-made furniture, bespoke pieces, design services, installation or repairs.
3. Quotes: state what is included, what is excluded, how long the quote is valid and when prices may change.
4. Customer Information: set out what measurements, drawings, access details or approvals the customer must provide.
5. Deposits: explain the deposit amount, when it's due and how it may be applied if the customer cancels.
6. Payment Terms: list progress payments, final payment timing, accepted payment methods and late payment consequences.
7. Custom Orders: say when the order becomes binding and when changes or cancellations are no longer possible without extra cost.
8. Change Requests: require written approval for any change to price, design, materials or timing.
9. Materials And Variations: explain natural variations in timber, stone, leather, fabric and handmade finishes.
10. Delivery And Installation: cover delivery fees, access, failed delivery, installation limits and risk.
11. Defects And Returns: set out your inspection process and make sure it works with the Australian Consumer Law.
12. Privacy And Communications: explain how you handle customer contact details, delivery addresses and project communications.

If you collect customer information through your website, showroom, payment platform or booking system, check whether the Privacy Act 1988 applies to your business. Many businesses with annual turnover over $3 million need to comply, and some smaller businesses are covered too, depending on what they do. Even if you're not covered, clear privacy practices help build trust.

Free templates often miss the furniture-specific details, especially measurements, materials, bespoke deposits and installation risks. A lawyer can tailor the clauses so they fit the way your business actually works.

Common Mistakes To Avoid

The biggest mistake is relying on vague invoice notes when the job is high value or custom made. A line like 50% deposit required doesn't explain what happens if the customer cancels, changes the design, delays approval or refuses delivery.

Watch out for these common issues:

• Using blanket non-refundable deposit wording: this can create Australian Consumer Law and unfair contract term risk if it goes further than your reasonable costs and losses.
• Not getting approvals in writing: verbal approvals are hard to prove if a customer later says the dimensions, finish or design were wrong.
• Promising exact completion dates: if your suppliers, materials or customer approvals can affect timing, use estimated lead times and explain what may shift them.
• Forgetting delivery access: large furniture, apartments, lifts, stairs and narrow doorways can add real cost and delay.
• Copying retail returns wording: bespoke furniture needs different treatment from off-the-shelf products, while still respecting consumer guarantees.
• Leaving out commercial account terms: if you supply cafes, offices, designers or builders on credit, you may need stronger wholesale terms, payment, title and recovery terms.

A better process is to have your terms accepted at the quote or order stage, then keep a written trail of approvals. That could include signed drawings, confirmed fabric selections, approved measurements and written change requests.

If something goes wrong, start by checking the signed quote, order form, messages, photos and delivery records. Then respond in writing, confirm what you understand the issue to be and set out the next practical step, such as inspection, repair or a revised quote for a change request.

Key Takeaways

• Furniture terms and conditions should cover both the product and the service side of your work, including design, measurements, manufacture and delivery.
• You can usually ask for deposits, but your cancellation and refund terms need to be clear, fair and consistent with the Australian Consumer Law.
• Bespoke furniture needs tailored clauses for materials, natural variations, customer approvals, change requests and delays.
• Delivery and installation terms should deal with access, failed delivery, risk, site readiness and extra charges.
• Your defects process should explain how customers report issues, while preserving their consumer guarantee rights.
• Templates can help you start, but your terms should be tailored before you use them with customers.

If you'd like help with your furniture terms and conditions, bespoke order deposit clauses, delivery and defect processes, or supplier and customer agreements, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.