Making effective everyday business contracts will reduce the risk of disputes and bad debtors and improve the value of your business.
Having an effective contracting solution in place is also fundamental to the effective implementation of Credit Management and Debtor Management procedures.
If you supply goods or services on credit, having an effective solution for making everyday contracts is SIMPLY A MUST. But you already know this. It’s why banks and large companies always having comprehensive standard form contracts and why the form of contract is the first things that any Lawyer or Debt Collector asks for.
The purpose of this Legal Guide is to assist your business to:
- Understand how most Contractors and Suppliers make everyday business contracts,
- Understand how and why you should make contracts incorporating relevant standard form Terms & Conditions of Trade, and
- Provide an insight into how our everyday contracting solutions (TradeSafe Contracts) can work for your business.
“Despite common practice, standard form Terms & Conditions of Trade can not be incorporated into a Contract by their inclusion on a Tax Invoice issued after the Contract was made.”
Here is why your Business should make effective everyday Contracts!
- Simply to stop making vague, ambiguous or unenforceable contractual arrangements that put your business at risk and lead to write offs or compromises when a dispute or bad debtor inevitably arises.
- To satisfy statutory contracting requirements, for example, under the Home Building Act.
- To enable you and your staff to apply best practice credit control procedures in your business.
- To reduce the risk of bad debts and disputes which might otherwise put your business or personal assets at risk and/or lead to expensive litigation.
- To strengthen your position to recover unpaid invoices and improve cash flow, including by obtaining security interests under the Personal Property Securities Act and/or personal guarantees which make all the difference when a customer faces insolvency and numerous creditors are competing to be paid.
- To confidently serve valid Payment Claims under Security of Payment Laws.
- To improve the value of your business by having clear and certain contractual arrangements that are capable of assignment to a purchaser.