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What Are Business Terms And Conditions?
Business Terms & Conditions set out the rules by which customers engage your business. You may have heard these referred to as a Service Agreement, a Client Agreement, a Customer Contract, Standard Terms or various other names – all designed to form a binding contractual relationship between your business and your customers.
When Do I Need It?
If you’re operating a business that provides services or products to customers, it’s always a smart move to have Business Terms and Conditions in place. In 2025, as digital transactions become even more prevalent, these terms help clarify each party’s roles and responsibilities, reduce the likelihood of disputes and protect you by limiting liability, safeguarding your revenue streams, and setting out well‐defined protections specific to your business model.
How Do I Use It?
Business Terms and Conditions are often drafted as a formal contract that both parties sign. However, thanks to advances in online contracting and e-signature technology in 2025, it is now common practice to attach these terms to an invoice, form, or proposal, allowing your customer to accept them without the need for a traditional handwritten signature. This simplified process not only streamlines transactions but also ensures that you are covered from the moment the customer engages your services.
For example, instead of including a signing block, your Business Terms and Conditions might state: “By placing an order, accepting a proposal, or making a payment for our services, you are deemed to have accepted these terms and conditions.” This approach is not only valid, it also reflects the modern way of doing business in the digital age. To make sure your documents are robust, we recommend having them reviewed by experts – check out our contract review services for detailed insights.
As we progress through 2025, Australian businesses are increasingly digitalising their operations. This trend makes it even more crucial that your Business Terms and Conditions are up to date and reflect current practices, including provisions for electronic acceptance, comprehensive dispute resolution processes and compliance with the latest consumer protection laws. For additional guidance on legal compliance in today’s digital climate, see our Regulatory Compliance page.
Business Terms & Conditions Example
| Alli runs a web design business. Before building a website for a new customer, Alli writes a detailed proposal which includes specifications for the website and the price payable. Alli attaches her Business Terms and Conditions to the proposal – these detail payment processes, protocols for delays, ownership rights over intellectual property, limitations and disclaimers regarding her services, and procedures for terminating the agreement. The terms state that by paying the quoted amount, the client automatically accepts Alli’s standard terms. This clear approach means that if any dispute arises over the scope or delivery of services, Alli can simply refer back to the proposal and the accompanying standard terms for resolution. |
Things To Include In Business Terms And Conditions:
- Business obligations – What is the scope of the services to be provided? Are there any limits or special conditions, and what happens if the services need to be altered?
- Customer obligations – What information, access, or cooperation must the customer provide to ensure the smooth delivery of services? What are the consequences if this is not met? (Learn more about setting clear expectations.)
- Payment – When must payment be made? Detail the payment process, potential late fees, and any other financial arrangements.
- Intellectual property – Clarify who retains ownership of any intellectual property created for or provided to the customer.
- Liability – Define the extent to which your business will be liable if something goes wrong or if a loss is incurred due to the services.
- Termination – Specify how either party may terminate the agreement, and detail the effects of termination, including outstanding fees or incomplete work.
- Dispute resolution – Outline the process to be followed if any disputes arise. This may include steps for mediation or arbitration before commencing legal action.
Need Help With Your Business T&Cs?
Creating Business Terms and Conditions can feel overwhelming, especially when you’re unsure of what to include or how best to word your clauses. It’s invaluable to get expert legal advice – a one-off cost that can protect you from future disputes and potential liability. At Sprintlaw, our team of experienced lawyers can assist with drafting or reviewing your Business Terms and Conditions to ensure they are current and compliant with 2025 standards. Get in contact with one of our consultants for a no-obligation discussion on how we can support your business legally.
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