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Why Terms & Conditions Are Your Business’s First Line of Defence
Date published: 08 October 2025 | Author: Nina Rossi
In the fast-paced world of Australian business, risk is everywhere—from late payments and scope creep to disputes over deliverables. Yet one of the most overlooked tools for managing that risk is also one of the simplest: your Terms and Conditions (T&Cs).
So What Are Terms & Conditions?
Terms and Conditions are the legal rules that govern your relationship with customers, suppliers, and partners. They outline:
- What you’re offering (goods or services)
- How and when you’ll deliver it
- What the customer must pay and when
- What happens if something goes wrong
They form a binding contract and are enforceable under Australian law—provided they’re clearly communicated and accepted.
How T&Cs Protect Your Business
- They limit liability, i.e. protect from losses or claims for damage, incomplete work, etc., by making clear who is responsible for what
- They prevent payment disputes by setting clear payment terms, due dates, and consequences for late payment (e.g. interest, debt recovery), as well as when and how rights to goods/services provided pass.
- They define the scope of work and state what is, or is not, included in the agreed work, hopefully in turn also managing client expectations and avoiding misunderstandings.
- They support compliance by aligning and ensuring adherence to the Australian Consumer Law (ACL) refund policies, warranties, and consumer guarantees.
- They resolve disputes efficiently through the inclusion of dispute resolution clauses (e.g. mediation before litigation).
Always keep in mind that outdated terms can be just as risky as having none at all, and regular checks are always recommended, not only when there is a change in law. You control the deal when you have the right T&Cs.