Guide

Business to business sales contracts

Use terms and conditions to get more from your supplier

Don't be afraid to take the initiative when negotiating contracts with your suppliers. You might find you can have terms and conditions amended or added - improving your position significantly. This will depend on your bargaining power.

Always read the contract carefully. You should make sure that the contract reflects what has been agreed in terms of:

  • quantities
  • price
  • payment terms
  • delivery schedule
  • defective goods

If you have the bargaining power, negotiate clauses that improve the transaction from your perspective. For example, a contract for the purchase of an IT system might have clauses added to include a period of free on-site servicing, or initial training for key staff.

You should also insist on the removal of exclusion clauses limiting the seller's liability for defective goods or for losses due to negligence. For more information about exclusion clauses, see the Unfair Contract Terms Act.

Find further information on negotiate the right deal with suppliers.

You should consider seeking legal advice when drawing up important contracts.