Once the company has been set up attention should be focused on how it operates. A business does not exist in a vacuum but interacts with many different groups (clients, customers, suppliers, wholesalers, employees etc). In order that these relationships are secure and can grow there are a number of key documents that should be considered.
Terms & Conditions
The Terms and Conditions on which a company trades will be very important. Not only will they stipulate how and when the company is paid but is will also protect the company in the event that something goes wrong by setting out the extent of the company’s liability. There are key clauses which should always be incorporated. These include provisions for price, quantity, quality, delivery and retention of title.
If the company employs workers then they must by law have contracts of employment that stipulate their rights and duties. Our dedicated Employment Law Team can ensure that these comply with the most recent legislation and best practice.
Distance Selling Policy
If your business is intending to sell goods or provide services over the telephone, Internet or other such medium then there are specific pieces of legislation that must be complied with. A company must comply with these laws either by incorporating them into their term and conditions or getting the customer to sign a separate contract before each purchase.
Data Protection Policy
As with distance selling, this area of business is subject to specific laws for which there are potentially heavy sanctions for non compliance.
Distribution or Agency Agreements
Many businesses will ‘sell’ their products though third parties, but not be aware of the legal implications of appointing an Agency as opposed to a Distributor. In these cases it is essential to clearly define and limit the authority of the Agent of Distributor in your contract.
If you intend to trade over the Internet, then you need to bear in mind all the above comments regarding Terms & Conditions, Distance Selling and Data Protection, as well as issues regarding which countries you are selling to.
For further information please contact our Business Team.