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Terms and Conditions of Sale
"I need terms and conditions of sale for a commercial business, including a 30-day return policy, payment terms of net 45 days, and a warranty period of 1 year for all products."
What is a Terms and Conditions of Sale?
Terms and Conditions of Sale spell out the rules and agreements between sellers and buyers when goods or services change hands. In the Philippines, these documents protect both parties by clearly stating prices, payment terms, delivery details, and warranty coverage under the Consumer Act and Civil Code.
Think of it as your business's rulebook for transactions - it helps prevent disputes by addressing return policies, refund procedures, and what happens if products arrive damaged. Filipino businesses often include specific provisions about online payments, shipping to remote islands, and local consumer protection requirements that align with DTI guidelines.
When should you use a Terms and Conditions of Sale?
Use Terms and Conditions of Sale when launching any business that sells products or services in the Philippines, especially for online stores, retail shops, or wholesale operations. These terms become essential before your first transaction to establish clear rules about payments, deliveries, and customer rights under Philippine consumer protection laws.
They're particularly important when expanding to new markets, introducing high-value items, or dealing with international customers. Filipino businesses need these terms in place to handle payment disputes, manage product returns, and protect against liability - especially for regulated products or services that must comply with DTI and FDA requirements.
What are the different types of Terms and Conditions of Sale?
- Quotation Terms And Conditions: For preliminary price offers, outlining pricing validity and order commitment terms
- Terms & Conditions For Sales Invoice: Accompanies billing documents, focusing on payment terms and settlement conditions
- Terms Of Sale Agreement: Comprehensive contract covering ongoing business relationships and repeated transactions
- Terms Of Sale Of Goods Contract: Specialized for physical product sales with detailed delivery and warranty provisions
Who should typically use a Terms and Conditions of Sale?
- Business Owners: Create and implement Terms and Conditions of Sale to protect their enterprises and set clear transaction rules
- Corporate Lawyers: Draft and review terms to ensure compliance with Philippine consumer protection laws and DTI regulations
- E-commerce Platforms: Incorporate terms into their online checkout process and user agreements
- Retail Customers: Agree to these terms when making purchases, gaining clarity on their rights and obligations
- Business Buyers: Review and negotiate terms for bulk purchases or B2B transactions
- Customer Service Teams: Reference these terms when handling disputes or processing returns
How do you write a Terms and Conditions of Sale?
- Business Details: Gather your company registration, DTI permits, and tax identification information
- Product Information: List all items or services, pricing structures, and delivery timeframes
- Payment Terms: Define accepted payment methods, installment options, and late payment policies
- Return Policy: Outline warranty coverage, refund procedures, and product return conditions
- Legal Requirements: Check DTI guidelines and Consumer Act provisions for your industry
- Online Elements: Include digital transaction rules and e-commerce policies if selling online
- Document Generation: Use our platform to create a legally-sound document that includes all required elements
What should be included in a Terms and Conditions of Sale?
- Identification Section: Complete business details, TIN, and DTI registration numbers
- Product Description: Clear specifications, pricing, and quantity terms following Consumer Act standards
- Payment Terms: Payment methods, due dates, and late payment consequences
- Delivery Conditions: Shipping terms, timeframes, and risk transfer points
- Warranty Provisions: Coverage scope, claim procedures, and exclusions
- Dispute Resolution: Philippine jurisdiction clause and mediation procedures
- Privacy Policy: Data protection measures compliant with Philippine privacy laws
- Cancellation Rights: Clear procedures for order modification or termination
What's the difference between a Terms and Conditions of Sale and a Deed of Sale?
Terms and Conditions of Sale and Deed of Sale serve different purposes in Philippine business transactions. While they may seem similar, understanding their distinct roles helps choose the right document for your situation.
- Purpose: Terms and Conditions of Sale govern ongoing business relationships and multiple transactions, while a Deed of Sale documents a single, specific transfer of property ownership
- Timing: Terms and Conditions apply before and during sales transactions, whereas a Deed of Sale is executed at the completion of a sale
- Legal Weight: A Deed of Sale serves as official proof of transfer under Philippine property laws, while Terms and Conditions establish general rules for conducting business
- Content Focus: Terms and Conditions cover broad aspects like returns, warranties, and payment terms; Deeds focus on property details, price, and transfer specifics
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