Terms of Trade

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Last updated November 18, 2025

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Suitable for Australia

Terms of Trade

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What is a terms of trade?

A terms of trade is a legally binding agreement that sets out the rights and obligations between a supplier and a customer for ongoing business transactions.
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When should you use a terms of trade?

You should use a terms of trade when establishing an ongoing supply relationship to clearly define payment, delivery, risk, and other key terms before transactions take place.
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What should be in a terms of trade?

A terms of trade should include details about quotes, orders, payment terms, delivery, risk, intellectual property, liability, dispute resolution, and procedures for changes or termination.
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Frequently asked questions

Who is this document suitable for?

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What protections does this agreement provide?

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Are there any risks or limitations to be aware of?

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Does this document cover both goods and services?

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What should I do after completing the agreement?

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Is this document valid Australia-wide?

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View Sample Terms of Trade

Terms of Trade
risk level indicator at Low level

The Legal Risk Score of a Terms of Trade Template is Low

Our legal team have marked this document as low risk considering:

  • There is a risk related to payment obligations, as the document allows the supplier to demand immediate payment for overdue amounts and apply high interest rates, which could financially strain the customer if payments are delayed.
  • The document permits the supplier to amend quotes and charges unilaterally, which could lead to unexpected costs for the customer if the scope of the goods or services changes after an order is placed.
  • The title and risk provisions transfer the risk to the customer upon delivery but retain title to the goods with the supplier until full payment is made, potentially complicating ownership and liability if disputes arise over payment or the condition of goods upon delivery.

Meet Our Users

Articles about Terms of Trade

How to Create Website Terms and Conditions (2025 Update)
By Dominic Woolrych|Jan 8, 2025

How to Create Website Terms and Conditions (2025 Update)

Every business should have terms and conditions on their website. Find out what they do and how you can create them in this article.

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Lawpath Legal documents Update (January 2020)

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What Are Incoterms and Why Are They Important?
By Vincent Appleton|Mar 18, 2019

What Are Incoterms and Why Are They Important?

Have you ever wondered what people mean when they talk about FOB, CIP, DAT? Do not worry, this is not some alien language. Find out what it all means here.

What Business Owners Should Know About Credit Control
By Frances Short|Dec 5, 2025

What Business Owners Should Know About Credit Control

Not being paid on time can severely affect the cashflow of your business. Read on for some strategies to manage your credit control.

Protect Your Online Business with Legal Documents
By Dominic Woolrych|Feb 5, 2015

Protect Your Online Business with Legal Documents

Learn what legal documents you need to protect your online business and prevent yourself from facing unnecessary legal consequences.

The Australian Competition and Consumer Commission (ACCC)
By Stephanie Makari|Apr 4, 2025

The Australian Competition and Consumer Commission (ACCC)

The Australian Competition and Consumer Commission (ACCC) has announced its compliance and enforcement priorities for 2025 to 2026.

5 Reasons Why A Terms & Conditions Is Important
By Justin Pasqualino|Nov 20, 2018

5 Reasons Why A Terms & Conditions Is Important

Before you skip the fine print, find out why not having terms and conditions could cost your business.

Amazon Ordered to Change ‘Unfair’ Rules in Australia
By Zachary Swan|Dec 5, 2025

Amazon Ordered to Change ‘Unfair’ Rules in Australia

Earth's most customer-centric company asked to review its 'unfair' contract terms for the Australian marketplace.

Term Sheet vs Memorandum of Understanding
By Cecilia Tran|Nov 21, 2025

Term Sheet vs Memorandum of Understanding

Looking to understand the difference between a term sheet and a memorandum of understanding?Read this article to find out what they are and when to use them.

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