The first line of defence against debtors is a strong set of terms and conditions.

Simply put, if you don’t have great terms and conditions, you are putting your business at risk. When terms are not clear, misunderstandings can arise, and clients go back on their word.

It is crucial for every business to use terms and conditions that:

  1. Are enforceable (and current); and
  2. Protect your business, and it’s cash flow to the fullest extent possible.

Great terms and conditions will include things like:

  1. personal guarantees from directors (if you are doing business with a corporate entity);
  2. a retention of title clause (so you own what you’re supplying until you’ve been paid for it);
  3. the ability to file a caveat over personal property to secure payment of a debt.

Why not just repurpose terms and conditions from a competitor? For the same reasons, you wouldn’t sit down to finish a burger left by a stranger in a restaurant. The burger wasn’t made for you, it was made for the person before you, to their specifications, and there’s no telling what nasty surprises you’ll get later.


  1. Regularly revisit your terms and conditions – can you rely on them to ensure you’re paid on time?
  2. Don’t repurpose or revamp other terms and conditions you come across – one size does not fit all.

Send us your terms and conditions – if they are already great, we’ll tell you so. If they could use some work, we provide fixed-fee cost-effective options to ensure your terms and conditions are working for you.

Contact the Corporate & Commercial Team at Rouse Lawyers today.