Contracts

6 tips for drafting good general terms and conditions

Good general terms and conditions can sometimes manage your biggest risks through 'fine print'. With these tips, you can draft terms that truly protect: keep them general, provide them in a timely manner, limit your liability within the law, and...

Published on April 29, 2020 by MKBjuristen.nl
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Good general terms and conditions can sometimes manage your biggest risks through 'fine print'. With these tips, you can draft terms that truly protect you: keep them general, provide them in a timely manner, limit your liability within the law, and tailor them to your business.

Tip 1: keep them generally applicable

General terms and conditions must be applicable to all your agreements. Formulate them in general terms so that you can invoke them as often as possible, but without becoming so vague that they do not regulate anything concrete.

Tip 2: tailor them to your business

A standard model often covers exactly the wrong risks. Tailor the terms and conditions to your industry, your customers, and your way of working. If you sell to both consumers and businesses, use two sets.

Tip 3: hand them over in good time

Conditions apply only if the other party could have known them in advance (Articles 6:233 and 6:234 of the Dutch Civil Code). Send them along with the quotation or agreement, or offer them in a format that can be saved online. A mere reference is often insufficient.

Tip 4: Limit your liability within the law

Limit liability, for example to the invoice amount or the insured sum, and exclude indirect damage. Complete exclusion is not possible, and an overly broad exclusion can easily be unreasonably burdensome for consumers.

Tip 5: Arrange for payment, force majeure, and retention of title

Set payment terms, interest, and collection costs, include a force majeure clause, and retain title to delivered goods until full payment. This way, you cover your most important risks.

Tip 6: keep them up to date

Legislation and your business change. Review your terms and conditions periodically, especially if you acquire new products, markets, or customers. Outdated terms and conditions provide a false sense of security.

Frequently Asked Questions

May I use a standard model from the internet?

As a basis perhaps, but a model rarely aligns well with your business and can leave you unprotected. Customization is stronger.

How often do I need to renew my terms and conditions?

There is no fixed term, but check them periodically, and certainly in the event of changes in the law, offerings, or customer base.

What is the most important mistake?

Failure to provide the terms and conditions in a timely manner renders them voidable, causing precisely the provisions you are relying on to lapse.

Want to have strong general terms and conditions drafted?

Our legal experts draft custom terms and conditions and perform a terms and conditions scan . View our contract law team or schedule a free consultation .

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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