Parker Law QLD are here to provide you advice on preparing or reviewing business documentation.
Terms of trade are an essential tool for any business. This governs the legal relationship between you and your customers whom buy on credit. This document can be used to improve your chances of being paid. How? You can add clauses that provide for:
- The right to charge interest on overdue accounts
- The right to charge an administration fee for chasing up overdue accounts
- The right to on charge any debt collector fees appointed by you to chase up overdue accounts
- The right to charge the assets of the customer and give you a right to take security over the assets owned by the customer if they do not pay overdue accounts
Give yourself the upper hand and protect yourself with good terms of trade documentation.
Service agreements are usually put in place between a you and a client you are providing a service to. For example, if you are being contracted to service a fleet of vehicles owned by a third party on an ongoing basis, then the third party will generally require you to sign their service agreement. No two service agreements are the same.
It is crucial that you obtain advice not only from a lawyer but also from your insurance broker. A service agreement may contain clauses requiring you to be liable for more risk than you usually would be exposed to or it may contain an indemnity clause.
An indemnity clause means you agree to reimburse someone else for any loss that they may suffer from an event or situation. Some businesses in Australia have become insolvent because they signed agreements with indemnity clauses and their insurance policies did not protect them from the risk that they assumed.
Don’t get caught out – obtain advice.
