Trading law

Understanding commercial contract law and the various selling regulations applying to your business is essential. The right terms and conditions help protect your business, minimising the risk of claims or disputes. Making sure you comply with consumer protection and other selling regulations helps you avoid conflict with customers and trading standards services.

Standard terms of business and trading contracts

Written standard terms of business, or trading contracts for particular jobs, help make sure it’s absolutely clear what has been agreed and protect you if things go wrong – for example, if a customer claims your goods are unsatisfactory. Although contracts don’t have to be in writing to be legally binding, written terms and conditions help provide evidence in case of a dispute.

Sometimes the law implies terms into your contracts with customers, especially if they are consumers and not businesses – for example, regulating whether and how much your contract can limit your liability if your goods or services are faulty. You cannot override consumer rights, so it’s wise to get legal help when drafting terms of business or other contract terms.

Just as you should have written contracts with customers, you should also have clear commercial contracts with suppliers, agents and other business partners. It’s vital to understand what terms and conditions apply and to check any complicated agreements – for example, if you are leasing equipment.

Selling regulations and consumer protection

Whether you are selling to businesses (b2b) or to consumers (b2c), you must comply with any relevant trading regulations. These stipulate what you can say about your product or service and how you behave when making a sale. For example, misleading marketing could lead to an investigation by trading standards and a fine or even imprisonment. Extra consumer protection regulations apply to selling to consumers (as opposed to businesses), helping to protect consumer rights.

Special regulations apply to distance selling and marketing, particularly when selling to individual consumers. These apply to any selling that does not involve face-to-face meeting – for example, mail order catalogues or online marketing. Amongst other things, consumers generally have an automatic right to cancel orders within a cooling-off period. The regulations also include restrictions on marketing – for example, unsolicited phone calls and ‘spam’ emails.

If you trade internationally, you will also need to take into account any additional local regulations covering sales, marketing or other aspects of your business overseas.