A solid set of terms and conditions (T&Cs) is essential for protecting a business when selling B2C (business-to-consumer). These T&Cs act as a legal contract that outlines the rights and obligations of both the business and the consumer, helping to prevent disputes and providing clear remedies if issues arise.

One key reason T&Cs are important is that they define the scope of liability and limit potential risks. For example, by outlining warranties and returns policies, a business can limit its exposure to costly claims while ensuring compliance with Australian Consumer Law (ACL). Businesses are legally required to offer remedies for faulty goods under the ACL, such as refunds, replacements, or repairs, but clear T&Cs can explain the process to avoid misunderstandings. Without clear T&Cs, a business may face extended disputes or non-compliance penalties.

Key terms to include in a sales invoice are:

1. Description of Goods/Services: Clearly describe what is being sold, so there’s no ambiguity.
2. Price and Payment Terms: State the full price, including taxes, and the payment method and due date.
3. Delivery and Risk: Outline the delivery process, the party responsible for delivery costs, and when the risk transfers to the buyer.
4. Returns and Refund Policy: Detail the conditions under which returns and refunds are allowed, while complying with ACL requirements.
5. Warranties and Disclaimers: Include any applicable warranties, while ensuring the consumer knows their statutory rights.
6. Governing Law: Specify that Australian law governs the transaction.

Australian Consumer Law, specifically sections 18 and 29, prohibit misleading or deceptive conduct and false representations, which underscores the importance of clear and transparent T&Cs. Additionally, the ACL’s Section 259 sets out remedies for major and minor failures with goods. Having well-drafted T&Cs aligned with these sections provides a safety net for the business.