As a new business, one of your top priorities will be laying the foundations for healthy relationships with your customers.

When you’re striking deals and selling goods, you and your customers will need a way to know where you both stand in the transaction and what your rights and responsibilities are.

You’ll also need a way of protecting your rights and avoiding unnecessary disputes in the event a sale or deal goes wrong.

To help with this, it’s wise to have property drafted Terms of Sale for your business.

What Are Terms Of Sale?

Terms of Sale are the terms and conditions a buyer and seller agree upon. They are the terms that will govern the relationship between you and your customers.

Terms of Sale are basically Business Terms and Conditions, but you might have also heard of them as Client Agreements, Customer Contracts, or even Service Agreements. Regardless of the name, they all serve the same purpose: to form a contractual agreement between your business and its customers.

When Do I Need Terms Of Sale?

If your business is providing goods or services to a customer, it’s always wise to have terms of sales in place. 

Terms of Sale will serve as an essential part of any of your transactions by helping you identify what you can expect from your customers, and what they can expect from you.

Additionally, they are a great way of simplifying and streamlining transactions when you want your terms of business to be the same for every sale.

In the event something were to ever go wrong, Terms of Sale can make it clearer and more easily identified where you and your customer are positioned. 

Your Terms of Sale also provide a way of including disclaimers and protecting yourself from being held liable from customers for the wrong reasons. If you’re unsure of what disclaimers are or how they can help your business, check out this article for more information.

How Do I Use Terms Of Sale? 

Terms of Sale can sometimes be written as a formal contract to be signed between your business and your customers.

However, it is easier to have the terms written in a way that can be attached to the back of an invoice, form or proposal, and drafted in a manner that does not require your customer to sign it to agree to the terms.

Instead of requiring a signature, Terms of Sale can often include a paragraph that states something like: “Customers are bound by these terms of sales when they order, accept or pay for any services provided by us which are stated as being subject to these terms.”

But you can only do this if you actually do provide your terms to your customers. 

What’s Included In Terms Of Sale?

The contents of your Terms of Sale will be unique to your business, and may vary depending on the types of goods you’re selling. 

However, some details you can expect in almost every Terms of Sale include the price, method of payment, delivery, returns, warranties, and exclusions of liability.

Let’s break these details down.


The price agreed upon between you and your customers.


When payment must be made, how it should be paid, if there are any up-front payments, and what will happen if payment is not paid by the due date (eg. late fees).


What is being delivered, how it will be delivered, the destination of the delivery, costs of delivery, and when delivery can be expected.

Returns and Refunds

The conditions for when a good can be returned or refunded, when the exchange must be done by, and if there are any fees in returning them. This must be consistent with the Australian Consumer Law (ACL).


Whether or not a standard warranty is given, what the warranty covers, how long it lasts, and under what circumstances it will be void. Again, this must be consistent with the ACL.


The extent your business is liable if something goes wrong or someone suffers a loss as a result of the product or service, which can include specific limitations to protect you.


Getting your Terms of Sale right is important for knowing where you and your customer stand in the transaction. It’s also key to limiting liability and protecting yourself in the event something goes wrong.

A strong Terms of Sale for your business will help you leave every transaction feeling safer and satisfied, as you’ll know what you and your customers can expect from each other.

That’s why if you need help establishing or improving your business’ Terms of Sale it would be wise to contact a lawyer and avoid standard templates to make sure your terms cover your specific situation and are up to scratch, saving yourself from potential headaches in the future.

At Sprintlaw, our team of experienced lawyers can assist you in getting properly drafted Terms of Sale, so check out our fixed-fee Terms of Sale package for Terms of Sale that are customised to your business’ needs. We’re available for a no-obligation chat on  1800 730 617 or at

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