Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
- What Are Special Conditions In A Contract?
- When Should You Request Special Conditions?
- Which Special Conditions Do Small Businesses Commonly Ask For?
- Are Special Conditions Enforceable In Australia?
- Varying A Contract Later: Deeds Of Variation And Change Control
- Negotiation Tips For Requesting Following Special Conditions
- What Legal Documents And Processes Help You Negotiate Well?
- Key Takeaways
When you’re about to sign a new contract with a customer, supplier, landlord or partner, it’s common to see a line like “requesting the following special conditions” in emails or drafts.
Special conditions are your chance to tailor the deal to your risks, cash flow and operations. Getting these right can save serious time and money down the track.
In this guide, we’ll explain what special conditions are, when to ask for them, how to request them step-by-step, and which clauses small businesses in Australia commonly include. We’ll also cover enforceability, how to vary a contract later, and practical negotiation tips so you can secure fair terms with confidence.
What Are Special Conditions In A Contract?
Special conditions are custom clauses that sit alongside the “standard” terms of a contract. They modify, add to or override the boilerplate so the agreement reflects your actual deal.
Think of them as the “bespoke” part of the contract: the parts about your payment schedule, delivery milestones, IP ownership, warranties, liability limits, exclusivity, or anything else you need to make the arrangement workable and low-risk for your business.
Special conditions can appear in a separate schedule (often called “Special Conditions”) or be inserted throughout the agreement. Either way, if there’s any conflict between special conditions and general terms, the contract usually says the special conditions prevail.
When Should You Request Special Conditions?
Early. The best time to raise special conditions is during negotiations, before anyone signs. Once an agreement is executed, changing terms requires mutual consent and can be harder to achieve.
Situations where small businesses should consider requesting special conditions include:
- High-value or long-term supply or services agreements where risk and scope need to be crystal clear.
- Projects involving deliverables, milestones or performance metrics (you’ll want acceptance criteria and change-control terms).
- Any engagement that would expose you to significant liability without a cap or carve-outs.
- Arrangements with tight cash flow impacts where staged payments, deposits or late fee mechanisms matter.
- Deals where your brand, software, content or data is involved, so IP ownership and licensing need to be spelled out.
- Situations with potential channel conflict, where exclusivity or non-solicitation terms protect your commercial position.
Even if a counterparty says their “template is non-negotiable,” many will still accept reasonable, clearly drafted special conditions that address real risks. It’s about proposing practical protections that match the value and risk of the deal.
How To Request Special Conditions (Step-By-Step)
1) Clarify Your Commercial Objectives And Risks
List your must-haves versus nice-to-haves. Focus on the handful of clauses that guard your biggest risks: scope and change control, pricing and payment, timelines, approvals, IP, confidentiality, liability, and termination rights.
2) Put Your Request In Writing
Share a clean list of proposed special conditions, ideally in a short schedule or a marked-up draft. Keep it plain English and solution-focused. If it helps, you can frame each item as “Rationale: ; Proposed wording: .” Clear, specific language avoids misunderstandings and speeds up review.
3) Use Clear, Operable Drafting
Vague terms cause disputes. Specify numbers, dates, processes and responsibility. For example, rather than “payment promptly,” say “payment within 14 days of valid tax invoice.” Instead of “acceptance subject to approval,” define acceptance criteria and an approval timeframe.
4) Prioritise And Trade
Go in knowing your top three non-negotiables. If pushback comes, be ready to trade a lower-priority item for one of your must-haves. Negotiations move faster when both sides feel they’re getting something important.
5) Align The Contract With How You’ll Actually Operate
If your accounts team issues invoices at delivery, don’t accept a milestone that says “invoice on acceptance” unless you can change your process. Contracts that match real workflows are much easier to manage and enforce.
6) Confirm Final Wording And Signing Mechanics
Once agreed, ensure the final document reflects the deal and that the special conditions section actually prevails over conflicting general terms. Decide how the contract will be executed (wet ink or e-signature) and who will sign.
7) Keep A Clean Version And A Playbook
Store the signed agreement and keep a short playbook for your team highlighting key obligations, dates and processes so nothing is missed post-signing.
Which Special Conditions Do Small Businesses Commonly Ask For?
Every deal is different, but these are the special conditions we most often see Australian small businesses request.
- Scope, Deliverables And Change Control: Define deliverables, acceptance criteria, and how changes are requested, approved and priced. This avoids “scope creep” and protects margins.
- Payment Terms: Set deposits, milestone payments or progress claims, and a clear invoicing process. Many businesses include a reasonable late fee mechanism aligned with Australian law; see practical guidance on late payment fees.
- Liability Caps: Limit your total liability (e.g., to fees paid) and exclude indirect or consequential loss where appropriate. For context on how these work, read about limitation of liability clauses.
- Set-Off And Withholding: Clarify whether a party can set off amounts or withhold payment and in what circumstances. Your accountant and lawyer may recommend tailored language; here’s a useful explainer on set-off clauses.
- Intellectual Property (IP): State who owns newly created IP, what licences apply, and any restrictions on use. If you’re providing software or content, this is essential.
- Confidentiality And Privacy: Add robust confidentiality terms and, if you handle personal information, ensure the contract aligns with your Privacy Policy and legal obligations.
- Exclusivity Or Non-Solicitation: If channel conflict is a risk, set clear boundaries. For B2B sales and partnerships, an exclusivity agreement (or clause) can be critical.
- Warranties And Service Levels: Define any performance commitments, SLAs and remedies for failure (credits, re-performance, or termination rights).
- Termination Rights: Add termination for convenience (with notice), and detailed termination for breach processes.
- Force Majeure And Hardship: Include a sensible approach for events beyond your control (supply chain shocks, disasters) and a process to renegotiate if the deal becomes unworkable.
- Dispute Resolution: A staged process (good faith discussion, mediation, then courts) helps resolve issues early and cheaper.
Keep your special conditions proportionate to the deal value and risk. Short, precise clauses usually get accepted faster than long legal essays.
Are Special Conditions Enforceable In Australia?
Yes-if they meet the usual contract law requirements. At a high level, you need offer and acceptance, consideration (value exchange), intention to create legal relations, and certainty of terms. It also helps to understand the basics of offer and acceptance so you’re clear on when a deal is actually formed.
A few practical points:
- Clarity beats creativity: If a clause is too vague, a court may find it unenforceable. Be specific.
- Don’t conflict with mandatory law: For example, consumer guarantees under the Australian Consumer Law (ACL) can’t be excluded where they apply, and unfair contract terms laws can void one-sided clauses in standard form contracts with small businesses.
- Execution matters: Make sure the final agreed wording is in the signed version, and that execution is valid. E-signatures are generally acceptable in Australia; if in doubt, check your approach to electronic vs wet-ink signatures.
- Emails can bind you: It’s possible for emails to create binding obligations if the key elements are present, so take care with “interim” confirmations. Here’s more on emails being legally binding.
- Unfair contract terms (UCT): If you’re using a standard form contract with consumers or small businesses, ensure your special conditions aren’t one-sided in a way that risks being void under the UCT regime. A targeted UCT review can help you stay compliant.
Varying A Contract Later: Deeds Of Variation And Change Control
Business needs change. If you need to amend a contract after signing, don’t rely on an informal chat-use the variation mechanism set out in the agreement.
Many contracts include a change-control process. If yours doesn’t (or the change is substantial), consider a formal variation pathway. You can:
- Follow any built-in variation clause (e.g., changes must be in writing and signed by both parties).
- Use a deed of variation for major changes, especially where additional consideration is unclear-deeds don’t require consideration to be enforceable.
For a practical overview, see these guides on making amendments to contracts and varying a contract legally. If your contract is silent on changes, a deed is often the safest route.
Tip: Keep version control tight. Label variations clearly, reference the original contract, and ensure signatories have authority to bind their organisation.
Negotiation Tips For Requesting Following Special Conditions
Getting agreement on special conditions is part law, part relationship, and part project management. These techniques can make a big difference.
- Lead with outcomes, not legalese: Explain the “why” behind each request. “We need a 30-day payment term because we’re funding inventory upfront and 30 days aligns with our supplier terms.”
- Keep it proportionate: Match the complexity of your special conditions with the deal’s size and risk. A one-page schedule can be more persuasive than rewriting an entire template.
- Offer alternatives: If the other side can’t accept a strict exclusivity clause, propose narrower territory, shorter duration, or tighter product scope instead.
- Avoid ambiguity: It’s cheaper to negotiate clarity now than to litigate ambiguity later. Dates, metrics, processes and approval rights should be explicit.
- Sequence the conversation: Tackle the most important issues first (scope, price, liability, termination). If these are aligned, the rest usually falls into place.
- Use a short Heads of Agreement for alignment: If the deal is complex, a brief Heads of Agreement can lock in the commercial basics before heavy drafting.
- Get a fast legal sense-check: A targeted contract review can flag red flags and suggest concise wording that’s more likely to be accepted.
What Legal Documents And Processes Help You Negotiate Well?
A little preparation goes a long way. Consider these tools and documents to streamline special condition requests and protect your position:
- Negotiation Checklist: A one-pager covering scope, pricing, payment, IP, confidentiality, data, liability, insurance, milestones, acceptance and termination. Use it as your internal guide so nothing is missed.
- Clause Bank: Keep tested, plain-English clauses for your most common special conditions. Update them as you learn what counterparties accept.
- Heads of Agreement: A short document capturing key commercial points before the full contract is drafted-handy for complex or fast-moving deals.
- Template Contracts: Where you’re the supplier, invest in well-drafted templates that already include your preferred special conditions. A light contract drafting refresh can lift acceptance rates and reduce back-and-forth.
- Deal Summary Email: After calls, send a concise recap of agreed points. This keeps momentum and reduces later confusion.
- Signing Plan: Decide execution method, signatories and dates early so you don’t stall at the finish line.
Key Takeaways
- Special conditions customise a contract so it reflects your real risks, cash flow and operations-raise them early and keep them clear and practical.
- Prioritise a few non-negotiables (scope, payment, IP, liability, termination) and be ready to trade on lower-priority items to get the deal done.
- Common special conditions include payment schedules, liability caps, IP ownership, confidentiality, exclusivity and change-control-keep them proportionate to the deal.
- Enforceability hinges on clarity, valid execution and compliance with Australian law, including unfair contract terms rules for standard form contracts.
- If things change later, use the contract’s variation mechanism or a deed of variation, and maintain strong version control.
- A short Heads of Agreement, a clean clause bank and a quick contract review can speed negotiations and improve your outcomes.
If you’d like a consultation on requesting special conditions for your next contract, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








