Online contracts: formation and terms

Any terms and conditions that you use should be tailored to the needs of your business and written using language that is plain and easy to understand. Generally, any contract for goods or services should address:

• your business identity, geographical address and contact details
• the description of goods or services being supplied
• the price and payment structure
• the delivery details, including the costs, time, place and who is responsible for delivery and returns.
• the rights of either party to terminate the contract, including information on the consumers right to cancel (if the right to cancel exists)
• confidentiality and data protection provisions
• confirmation of which country's laws apply to the contract

Your contract should include all of the information required by law including the pre-contract information required under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

Limitation of liability clauses

Clauses limiting one or both parties' liability are usually the most contentious. There are restrictions on the ability of businesses to limit their liability. Generally, clauses limiting liability need to be reasonable to be enforceable.

There are stricter rules for businesses dealing with consumers, so it is more difficult for businesses to impose exclusion of liability clauses.

Dealing with consumers and business customers

For businesses who deal with both consumers and business customers, it is usually better to have two sets of terms and conditions. Business customers have similar protections to consumers from misleading advertising.