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Business policies or Terms&Conditions

Writer: Jyoti GogiaJyoti Gogia

Updated: Oct 14, 2021

Terms and conditions may be interpreted as an "informal" contract between a business and its users and/or customers. Terms of sale are used on a business-to-business or business-to-consumer basis, depending on who you are selling/providing services to.

Freedom of contract exists in a B2B business relationship whereas if you sell to consumers, then stronger protection is always afforded to the consumer if you are selling any goods or services within the EU or any EU member state.

Some issues that a webshop must consider are

  1. User guidelines (your rules and restrictions on use)

  2. The right to terminate abusive accounts.

  3. How users can terminate accounts.

  4. Warranty disclaimer.

  5. Limitation of liability.

  6. Governing law and legal disputes.

  7. Contact information.

If a web-shop has terms and conditions on their webpage which contravene with EU law then the web-shop must amend these so as to put these in line with EU law. For example, in 2003, the company Virgin Wines Online terms and conditions stated that a consumer that the goods sold on their website were non-refundable and that cancellation of the product could only be effective if such a measure was done via email or a phone call. Another term stated that in certain contracts, delivery could take over 30 days. Virgin Wines were obliged to change these terms following an approach by the Office of Fair Trading.

T&C's set out the rights and obligations by both parties. So, for example, if a company fails to provide its goods or services then the customer can always turn to the T&C's of that business which is usually stated on the business's website. The same applies to business policies that mention the responsibility of the service or goods provider. It is therefore important that all businesses draft their T&C's to the point. Doing so may release them from many problems that may occur in the future. LexGo is accustomed to drafting T&C's and business policies. Oftentimes, knowledge of the law is crucial as the law can be mentioned in the policies or T&C's of a business. No one party should exceed their responsibility or be unjustly treated. Rules should be set out from the onset before any business-to-business or business-to-consumer relationship starts. Transparency and predictability make a business's life so much simpler, and likewise customers.

In order to use your website, product, or mobile application, your users must agree to abide by a business's policies.



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