In many cases, there may only be one set of terms and conditions in operation. If so, questions regarding their application and understanding the parties’ rights obligations under the contract may be easily resolved. But what if both sides have fired off their own standard terms and conditions in communications? What then, whose standard terms will apply (if at all)?
The outcome to that question may have wide-ranging consequences for you and your business and the rights and remedies available to you under the contract. For instance, under your standard terms, you might be entitled to suspend performance under the contract, exercise a lien over goods until your invoices are paid in full, or reasonably limit your liability for any breaches of the contract by you. Conversely, the other side’s terms and conditions might contain punitive provisions regarding performance, which you would otherwise not wish to agree.