How to Write Business Terms And Conditions

Terms and Conditions are important in every business. These are normally drafted to prevent clients from abusing the business’ products and services. In short, they serve as instruments to protect the legal rights of every company doing business.

Seeking the help of an expert is highly advisable when executing personalised terms and conditions agreement for your business. This is considered as a sure way to make every agreement legal and binding; it also guarantees that your terms and conditions entail everything that is required in order to avoid any stipulations that may produce legal disputes.

In this piece, we spoke with Scott from JMA Credit Control in Melbourne and he will be sharing with us a guideline which you can use in drafting your initial terms and conditions agreement.

Avoid Using Legal Jargon

Keep it simple. Do not overcomplicate your agreements. Keep it straightforward, friendly, and easy to read and understand by everyone. Avoid using legal terms or jargon just to sound smart. Keep in mind that in executing your terms and conditions, you are also preparing material for marketing purposes.

Remember the golden rule: the simpler the better. Simplicity in the terms and conditions gives customers peace of mind and confidence in the services you provide. Using highfalutin words will not attract customers but can potentially mean lesser customers. Keep it direct to the point as you do not want to bore your customers with heavy reading materials.

For as long as your terms and conditions agreement explains accurately the rights and obligations of each party, the high are the chances of securing the sale. So in writing your initial draft, adopt only a more personal and friendly approach to make customers more at ease and less wary in reading through your customised terms and conditions material.

Explain Complicated Terms

If you cannot prevent using legal and complex words in your terms and conditions agreement, make sure to include a “Definitions” portion at the end of the material. Your top priority is to build a good relationship with your clients. Adding this section will give them an idea that you are operating an honest business, with no hidden agenda but to deliver a reliable service.

Explain What’s Included in the Price

Be transparent with your business transactions. Make sure that your customers know what’s included in the marked price they negotiated for. If there are additional items that your customer believes to be part of the cost they have paid, address the issue right on and explain properly what only goes in the package they bought.

If there are cases where the price varies for other product options, communicate the matter to your customer so they have all the information they need in deciding what’s best for their needs.

Skip the Vague Statements

Honesty is the best policy. Customer confidence plays a big role when it comes to repeat and referral sales; hence, in growing your business’ success. Double-check your terms and conditions and make sure that it doesn’t include any vague or misleading statements.

It is imperative that the words used in the agreement must be given their ordinary meaning when read by your clients. Remember that your customers are not the only party to the said contract, you too are also bound to the stipulations provided, and adding deceptive and/ or false statements in it may be used against you as a violation of the Australian Consumer Law.


Terms and conditions are mainly executed to protect your business from any type of illegal actions of abusive clients. Hence, it can leave your business vulnerable to abusive users if not written intelligently. Click here for more great tips on writing Terms & Conditions for your business.

If you’re a business owner that wants to ensure that you only have binding terms and conditions that will protect all your legal rights, consider hiring or consulting with an expert so they can help you in writing your customised terms and conditions appropriate for the nature of your business.