Fundamentals of Business

Some contend that in a competitive market

Some contend that in a competitive market, consumers have the ability to shop around for the supplier who offers them the most favourable terms and are consequently able to avoid injustice. As noted, however, many people do not read or understand the terms so there might be very little incentive for a firm to offer favourable conditions as they would gain only a small amount of business from doing so. Even if this is the case, it is argued by some that only a small percentage of buyers need to actively read standard form contracts for it to be worthwhile for firms to offer better terms if that group is able to influence a larger number of people by affecting the firm's reputation Another factor which might mitigate the effects of competition on the content of contracts of adhesion is that, in practice, standard form contracts are usually drafted by lawyers instructed to construct them so as to minimize the firm's liability and not by managers making competitive decisions. Sometimes the contracts are written by an industry body and distributed to firms in that industry, increasing homogeneity of the contracts and reducing consumer's ability to shop around.

CAUTION
STANDARD CONTRACTS ARE NEVER READ, DON'T BE NAIVE, AS AN ENTREPRENEUR, YOU MUST READ AND UNDERSTAND THE CONTRACT, THERE IS A SAY 'IGNORANCE OF THE LAW DOES NOT EXCUSE', AS AN ENTREPRENEUR YOU ARE LIABLE FOR WHAT YOUR ARE DOING, IT IS PARAMOUNT TO UNDERSTAND TERMS AND CONDITIONS OF A CONTRACT. ALWAYS READ THE 'SMALL PRINT'.

Examples of standard contract's terms and conditions
Tillomed Laboratories Ltd
TERMS AND CONDITIONS OF SALE
1. Value Added Tax
All prices are subject to the standard rate of Value Added Tax, ruling at the date of invoice, on the net invoice value. The invoice date is the tax point for V.A.T purposes.
2. Prices
Tillomed Laboratories Limited (hereinafter referred to as the Company) reserve the right to amend any of the prices without due notice. Orders accepted on condition that the goods will be invoiced at the prices ruling at the date of delivery.
3. Payment
Payment is due 30 days from the date of the invoice. The Company reserves the right to charge interest on overdue accounts at the rate of 3% above the base per month until full payment is made, without prejudice to the right of recovery.
4. Minimum Order Charge
All orders under £50 will incur surcharge of £5 towards delivery
5. Non Delivery
Non Delivery must be notified to the Company within seven days of advice of despatch or invoice date.
6. Ownership
All goods remain the property of the Company until paid in full.
7. Returned Goods

In accordance with existing rules and regulations issued by the DHSS and as published in 'MAIL', goods will only be accepted for return by the Company for the following reasons:
a) Incorrect delivery
b) As the result of a product or batch recall instigated by a Manufacturer
c) When damage occurred in transit

For consideration to be given to replacement, the goods must be returned together with the notice giving:
I) The name and address of the recipient
II) Full description and quantity of the goods
III) Detailed reason for the return of the goods