Do you have terms and conditions of sale and purchase for your business? If not your legal position may not be properly protected.

As soon as we are instructed in a legal dispute the first question we ask is what are the written terms and conditions between the two parties. Often there are none. There will always be less protection for a party without terms as they will only be able to rely on protections granted by statute. Even where there are terms it is sometimes difficult to establish whose terms apply.

In a recent decision last month the courts had to look at whose terms applied, the so—called “Battle of the Forms” issue. GHSP makes electronic control systems for vehicles. It agreed to buy sensors from AB Electronic. The finished product was to be supplied to Ford to use in trucks. Some of the sensors failed and Ford suffered substantial losses and big consequential loss claims followed. Each of GHSP’s and AB Electronic’s terms favoured their own position. The court said neither set of terms applied so that the Sale of Goods Act 1979 was the applicable law. The parties had negotiated about terms but had not agreed them. They had realised liability would be a difficult issue and just parked it.

We can draft terms for you and advise on how to ensure your terms apply. If you have legal disputes later we can help you resolve them. For further information please contact Cathy Cook at Jordans Solicitors Wakefield Office in West Yorkshire.

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