Who are Terms of Trade for?
This bundle is for suppliers who supply products (also known as ‘goods’) to business customers. It sets out the ongoing trading relationship between a supplier and its business customers and can be customised to your specific commercial circumstances.
Products can be any physical item such as food and beverages, building supplies, furniture, machinery or vehicle parts. Terms of Trade provide a standard set of terms for all customers of the business. If you need to document a specific deal with a specific customer, use our Product Supply Agreement instead.
What’s in the Term of Trade Bundle?
Three key legal documents for trade suppliers:
- Terms of Trade – cover all the key terms of a trading relationship between a supplier and its customers. These include a process for placing orders, delivery terms, inspection and acceptance, price and payment, product warranties, passing of risk and title to the customer, security interest in the products sold under the Personal Property Securities Act 1999, intellectual property, force majeure (unexpected and uncontrollable acts that prevent delivery), confidentiality, rights on default and dispute resolution. You can choose whether to include services related to the supply of the products, such as product design services. It also contains reasonable limitations on the supplier’s liability to give you legal protection in case of a claim that the products are defective or otherwise caused a loss to your customer.
- Credit Account Application Form (optional) – used to collect information about a customer’s legal status (trust/company/sole trader), financial size and stability, and trade references, contains the necessary Privacy Act consent and includes an optional Guarantee and Indemnity for company directors or other third parties to give the supplier protection in the event the customer defaults in payment.
- Order Form (optional) - template Order Form setting out the specifics of the order - products, services, price and delivery date, and the customer’s acceptance of your Terms of Trade.
Why do I need Terms of Trade?
By setting out the key terms of the trading relationship upfront in writing, you’ll reduce the potential for misunderstandings or disputes, protect yourself from non-payment by your customer and limit your liability when things go wrong. The Credit Account Application Form (with optional Guarantee and Indemnity) collects the necessary information (and obtains the required privacy consent) so that you can decide whether to grant credit and, if so, the credit limit. It also provides further protection for non-payment by your customer. The Order Form provides clarity and certainty around the key particulars of the order.
How long will it take me to create my Terms of Trade Bundle?
5-10 minutes – quicker than grabbing your next coffee! You will need to complete the Q&A within 10 days of purchase (after that your access will expire). Please reach out to us at hello@onyourterms.co.nz if you have any issues.
What information do I need to complete the Q&A?
- The name and contact details of the supplier
- Whether the supplier may provide any related services
- Warranty terms, period and exclusions/limitations
- Product inspection period
- Price and payment terms
- Delivery terms
What if I need help?
On Your Terms has teamed up with Luminate Legal to offer its customers the option of obtaining legal advice from a lawyer to provide extra assurance and peace of mind. If you would like to ask a lawyer some quick questions about your document (or your responses to the Q&A), or have your document reviewed/edited by a lawyer, click here to view and select Luminate Legal's packages and fixed-fee pricing exclusively for On Your Terms customers.
What do I do once my Terms of Trade documents are created?
Once you have downloaded your documents, you can upload the entire package of documents to your website, or just the Terms of Trade. The Terms of Trade should be referenced in or attached to your quotes and to all order forms to evidence your customer’s acceptance of the terms. If your quoting or ordering process is via email or online, make sure you get your customer to accept the terms expressly (this can be by requiring customers to ‘tick the box’ to accept). Having the terms on the back of your invoice is not enough because you can’t prove that the customer agreed to the terms before placing an order with you.
The Credit Account Application Form is a template ready to be completed and signed by customers (or potential customers) applying for credit.
Other helpful information:
- You may also find these bundles or documents useful for your business: Product Supply Agreement, Individual Employment Agreement, Independent Contractor Agreement, Term Sheet for Project, Services Agreement and Mutual Confidentiality Agreement
- For your credit account customers, to protect yourself from non-payment you need to register a security interest in the products you supply on the Personal Properties Securities Register - see www.ppsr.govt.nz for more information
- Check out our FAQs here
If you’re unsure whether this bundle is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If you’re not satisfied with your purchase of this product for any reason, let us know why within 10 days of your purchase and we’ll work with you to make sure you’re happy, including giving you a full refund if necessary.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.