The contract and delivery terms, which the customer agrees to prior to purchase, is determined by the seller. However, this doesn’t mean they have free reign when writing terms and conditions – there are guidelines determining which clauses should be included. This covers, for instance, details on who is liable for damages and who has the burden of proof (even for damage after receipt of the product or service). For contracts between traders, the place of jurisdiction for potential claims must also be stated. In addition, the terms and conditions must comply with the intelligibility requirement. That is, they must be easily understandable for laymen.
The following ought to be included in the terms and conditions:
- Information about the seller
- Scope of the contract
- Object of the contract
- Deadlines
- Formal requirements
- Liability limitations
- Payment
- Delivery terms
- Warranty or guarantee
- Retention of title
- Information about the contract storage
- Language availability information, for international customers
Accordingly, writing terms and conditions is subject to particular guidelines and restrictions. One example of this is that the seller may not insert a general disclaimer for new goods, stating that they aren’t responsible for any defects or damage. Furthermore, any disadvantages from a buyer’s perspective have to be clearly stated – not hidden. Generally speaking, the seller must bear the cost of any such unreasonable clauses.
General terms and conditions are fully verifiable in the judicial process. This means that a legal rule is applicable whenever a court decides that a given clause in the contract is void, or otherwise disadvantages the buyer. This legal oversight ensures that both contractual parties are protected – seller and buyer.