SELF STUDY AREA

(Learners only)

 


 

 

 

 

 

 

 

 

 

 

 

 

Contract Law Essentials

 

View the video on Contract Law 

 

Exercise 3.1

Please make notes on key contract terms before the group session, by using this link 

 

 

A list of the cases referred to in the presentations is available to download here.

 

Please Note - you will not need to quote these cases during test or assessments, these are included for information and explanation purposes only

 

Legislation affecting Roofing

 

Use the Links to Legislation to check your knowledge of Laws and Regulations which are applicable to roofing companies.

 

Exercise 3.2

Test your knowledge on key legislation before the group session, by using this link.   

 

 

 

Exercise 3.3  Assignment

Please prepare a report (max 250 word) detailing how your business complies with any three pieces of legislation on the list of Links.  UPload to the system using this LINK

Terms and Conditions

 

In the early days of starting up a business, there’s a long list of tasks to complete. Sorting out the terms and conditions of trade is not always at the top of the list. Getting your product/service market ready, finding customers and marketing your business may take priority in the startup process.

 

Neglecting terms and conditions could impact your cashflow through delayed payments and having to pay for materials before taking payments.

 

In a worst-case scenario, you could end up spending lots of money and wasting time on debt collection or even court proceedng.

 

Late payments are often common for small businesses, as customers often give lower priority to bills from small firms. With the right terms in place, however, you can ensure that you get paid first. If you get your terms right and there’s no excuse for slow payments.

Protect your business

Clearly, if you don’t specify terms and conditions you put yourself at risk of uncertainty and misunderstandings – it’s vital to establish the actual arrangement between the two parties involved in any deal. You need to cover yourself, so clients or partners have no opportunity to go back on their word.

 

What to include

Well-drafted terms should act like a manual for doing business and offer clarity on what should happen in a given situation. 

 

The exact elements to include depends on the individual business but you should consider including:

  • A clear definition of what products or services will be provided
  • Setting out the payment terms – when is payment due
  • Any guarantees or warranties offered
  • Timelines for delivery/completion of services and any queries
  • Specifying what happens if either party doesn’t deliver or pay or wants to end the relationship
  • The terms of the agreement and what notice is required to get out of it
  • Which law shall govern the contract

There is a legal requirement for invoices to set out the business name and address as a minimum and if they are a limited company they must set out the company name; the company number; where it is registered; the registered office address, which may be different to your actual trading or correspondence address,  If the business is registered for VAT, it must state the VAT number.

 

There is no legal requirement to include terms and conditions on invoices though many people put their terms on the back of them.

When things aren’t clear

Failing to specify terms could have a serious impact on your cashflow.   

 

You may end up in a situation where the customer thinks they will pay at the end of the project and you think you are being paid at the beginning or in stages, so you could end up having to pay for materials and staff before you have received any money from the customer.I

If you do not specify so in your terms, you have no right to charge interest for late payment, so you will be out of pocket if a customer pays late

 

 

Exercise 3.4  Assignment

BRING A COPY OF YOUR COMPANY'S  T&C TO THE NEXT GROUP LEARNING SESSION