I have always implored businesses to have a good set of standard terms and conditions incorporated into their credit applications and ensure that all prospective clients sign this agreement to be used as firstly a tool of credit vetting, secondly as a basis for all future business dealing between the parties and finally as tool in the event of there having to be any bad debt recovery should this unfortunate eventuality arise.

At the moment there are a number of businesses that are looking at ensuring that their credit agreements incorporating standard terms and conditions of trade comply with the National Credit Act and the various recent court decisions impacting on aspects of the terms and conditions and securities.

However there seems to be a number of credit mangement consultants who have no legal background who are providing and even charging for new sets of standard terms and conditions. I have in the last two months had the misfortune of perusing two such documents. The quality of the legal drafting in these documents was poor to say the least. They appeared to be some document that once emanated from a qualified attorney’s office but had been butchered through unskilled and ill-informed hands and numerous added clauses, resulting in a sad document that would hardly serve the purpose for which it was intended.

I implore any business that is looking at updating or implimenting a set of standard terms and conditions to employ the services of a qualified attorney, who is experienced in contract and credit law, to ensure they get a document that is suitable to their particular business, protects them properly and is legally enforcable.