Terms of business template
Terms of business are the standard terms a firm applies to the services it provides to business clients. They cover how work is ordered, fees and expenses, invoicing and late payment, ownership of the work, confidentiality, liability and ending the relationship. A consultancy or agency sends them with each quotation or proposal, so each order sits under the same set of terms.
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What changes each time
12 values. Everything else is your wording, kept exactly.
Your business
- Business's full legal name
- Company number
- Address
- Trading name
Orders
- What an order is
- Client role
Fees and payment
- Rate review notice
- Invoice timing
- Payment terms
- Late payment interest rate
Liability and ending
- Liability cap
- Notice to end ongoing services
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“Describe the business as a company with a registered number, or as an individual with an address.”
Only the chosen description appears.
- Only when…
“Include a trading name only when the business trades under another name”
'Trading as' and the name appear.
- One of several wordings
“State fees as excluding VAT, or say no VAT is charged because the business is not VAT registered.”
The VAT wording reads as the chosen option.
- Only when…
“Include an annual rate review only when rates are reviewed”
The business may change its rates once a year on notice, except on accepted fixed-price orders.
- One of several wordings
“Invoice on completion, monthly in arrears, or as set out in the order.”
The invoicing clause reads as the chosen option.
- One of several wordings
“Require payment within a number of days of the invoice date, or on receipt.”
The payment clause reads as the chosen option.
- One of several wordings
“Claim statutory late payment interest and compensation, or a stated rate above the Bank of England base rate.”
The late payment clause reads as the chosen option.
- Only when…
“Include portfolio use only when relevant”
The business may show the deliverables in its portfolio unless told they are confidential.
- One of several wordings
“Limit liability to the fees under the order, a fixed sum, or a multiple of fees paid.”
The liability clause reads as the chosen option.
- Only when…
“Include notice to end ongoing services only when the services are ongoing”
Either party may end ongoing services by notice.
Questions people ask
What are terms of business?
The standard terms a firm applies to every client, so each new engagement only needs the details of the particular job.
How are terms of business different from a letter of engagement?
Terms of business are the general terms for every client. A letter of engagement describes the specific work, fee and dates for one client, and often refers to the terms.
How do they become part of the contract?
Send them with your quotation or proposal and make clear that acceptance is on these terms.
Can I charge interest on late payments?
In business-to-business work you can claim statutory interest and compensation, or agree your own rate in the terms. The terms let you choose.
Who owns the work produced?
The terms assign the intellectual property in the deliverables to the client once it has paid.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.