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Commentary

156.2 Restrictions on the drafting of standard terms

BUSINESSES vol 4(2) start-up, sale and purchase

156.2 Restrictions on the drafting of standard terms

| Commentary

There are three main restrictions on the freedom of a business client to include whatever terms it wishes in its standard terms. The first consideration is that the client will be restricted by what its suppliers and customers are prepared to accept. This will of course depend largely upon the client’s bargaining power relative to those other parties. A second, related restriction regards the client’s reputation in the marketplace. For instance, where the client is in the business of selling high quality designer goods, it may damage its brand image if it becomes widely known that its standard terms attempt to exclude all responsibility for the quality of the products sold.

The third restriction

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