Do You Have Terms & Conditions For Your Business? See 3 Reasons Why.
Building successful businesses this days demands being more than smart, across different continents and economies of the world. We can attest to the fact that even great businesses suffer loss from time to time, most especially from avoidable lawsuits; how much more small and growing businesses. These losses can stem from business deals, supplies, procurement contracts, shipping, logistic, freight damages, professional services, etc.
As a growing or upcoming business, you may feel “hidden from the radar”, while you make profits, accomplish business objectives and grow. However, have you thought about having a legal document acceptable by law, to help prevent losses stemming from business disagreements or dissatisfaction? Documented agreements for terms of service (e.g. service policies, contract agreements, terms and conditions of service, etc.)
What is Terms of Service?
Terms of service, also referred to as terms and conditions, T&C or disclaimer, etc. is a legal agreement between a service provider and a person who intends to use such service; and, by offering or using such service, each party agrees to abide by the stipulated terms.
Dissatisfaction or disagreements in business, is inevitable; and a consideration of basic and necessary documentations/contract agreement, to protect your business interest, prevent or minimize losses and maintain compliance, should the situation arise, wouldn’t be out of place.
Now, we shall consider top 3 reasons why you need terms of service, recognized by law for a small, growing or established business. The points include:
1. To protect your business interest
2. To prevent or minimize losses
3. To ensure total compliance to standards, quality, expectations, etc.
1. To Protect Your Interest:
It’s now more witnessed in today’s business world, how people default on business or contract agreements, most especially when: they know that there’s no legal framework set-up to manage lapses; they feel they can intimidate, cheat or oppress their business partners; or, they feel they can use the government against you or the business, etc.
What then, could be a great measure that would protect your interest in an event of a breach of trust in business transactions, supplies, procurement, etc.?
A contract alongside terms and conditions of service legally recognized, would best serve, as an answer to ensure all concerned parties keep to their sides of the business agreement.
2. To Prevent or Minimize Losses:
As a small or growing business, it’s wise to plan for loss control, in whatever form it presents itself. For instance, even an insurance company that provides cover for losses, also has its terms of service and business policies activated while signing up, to help prevent clients from unduly taking advantage of the organization and its business interest.
If an insurance company would make available, a term of service which is legally binding to their customers, how much more the businesses they cover for? So, it is expected that your business should have a contract agreement, service policy or disclaimer from a competent lawyer.
Now, because it’s a growing business, there’s this temptation to cut or avoid cost from all angle, e.g. choosing to plagiarize your competitor’s terms and conditions of service, when you clearly need to hire the services of a legal consultant to understudy your business for lapses, and provide you with a well-thought out service policy, disclaimer or terms and conditions most suitable for service; avoid the temptation.
3. To Ensure Total Compliance:
Legal binding agreements for business contracts, services, etc. would always accomplish one major result: Total Compliance; since all concerned parties (contractors, vendors, associates, partners, clients, etc.) can sue or be sued for damages under the recognized law.
Legal agreements on service levels, quality assurance, deliverability, standards, etc. have proven from recent research, to make businesses very much trustworthy and open to bigger opportunities. A legal contract agreement is very much instrumental to building trust, required to unlock more business deals.
These and many more are the numerous benefits of having your terms and conditions of service for a business; and, if you currently don’t have one in place, or need to review yours, we can help your business with the right legal consultation it needs to develop one and become the success you have envisioned for it.
STRUGZ is a Public Relations, Legal, Business Management and Training Consulting Firm, with a passion to help its clients explore new opportunities and maximize profit potentials.
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