A
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Using standard terms
Alice Glenn, a solicitor,
has been invited by the local Chamber of Commerce to give a talk to a
group of young entrepreneurs on using standard terms in business
transactions.
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The standard terms of any company will
always be subject to legal restrictions, either statutory or common law. The
terms must be regularly reviewed to ensure that they don’t conflict with
new legal developments and that they continue to reflect the aims of the
company.’
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B
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Incorporating terms
‘Because it’s a basic principle of contract law that new terms
cannot be introduced after a binding contract has been made, the proposed standard
terms must be incorporated into the offer. For a seller then, it will be
essential to ensure that an offer to buy is on the seller’s terms, for
example on a standard order form which incorporates the seller’s standard
terms and conditions. The offer from the buyer can then be confidently
accepted by the seller without the need for further qualification. However,
an apparent ‘acceptance’ which is stated to be ‘on the following terms’
could actually constitute a counter offer and lead to an unwelcome battle
of the forms, which both parties seek to impose their own standard terms.
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