LEGAL | EDITORIAL
it accrue?
PAYMENT
• Do prices include GST?
• If a cash sale, what payments are
accepted (i.e. credit card, cheque, EFT)?
• If there is a credit sale, are the terms
of sale consistent with any credit
agreement?
• Where selling on credit, do you have an
agreement with personal guarantees,
provision for charging interest on overdue
payments?
• Can costs of collection of overdue
payments be charged to the customer?
DEPOSIT AND PROGRESS
PAYMENTS
• Are the amounts and times when
payment is required clearly stated?
• Are deposits and progress payments
consistent with legal requirements about
the amount and when they are paid?
NOTE: Some states limit the amount
of deposit that a contractor can charge
when doing home building work.
• If the goods are sold on credit, are
the terms of the credit agreement
incorporated or referenced?
• Is interest chargeable? When and how will
CONSUMER LAW
• Is there a prohibition on withholding
payment if there is a dispute? • Do you deal with consumers or small
business?
• Can you suspend delivery for payment
default? • Do your terms comply with consumer law
requirements?
RIGHTS IN RELATION TO THE
GOODS INTELLECTUAL PROPERTY
• Are there terms covering passing of risk,
passing of title, security for payment?
• Is there a limitation of time for claims for
shortage and loss or damage in transit?
• Does your contract include rights to
create a personal property charge over
the goods?
• Importantly, do your terms of sale still
refer to superseded rights of retention
that have been replaced by personal
property security legislation?
WARRANTIES
• Are your warranties expressly stated?
• Are there exclusions?
• Is there an exclusion of implied warranties
required?
• Who owns the designs, drawings, film and
artwork?
CLAIMS
• Is there a term requiring the customer to
notify defects within a required time and
allow rectification by the seller?
• Is there a term limiting liability for
damages?
• Is there a term requiring notice of a claim
and/or mediation or arbitration before
taking court action?
These are a few of the items you should
think about. Remember, the terms of sale
are the foundation of a business transaction.
I can recall an old Sunday school song that
said, ‘build on the rock and not on the sand’.
A good sales agreement is the rock for a
successful business transaction.
For more information, contact Greenhalgh Pickard Solicitors and Accountants on 07 5444 1022 or
visit www.greenhalghpickard.com.au
WISHING ALL
A MAGICAL
A HAPPY AND
BRIGHT NEW YEAR
FROM ALL OF US AT AWA AND NSSA
WINDOWS MAGAZINE 23