Terms of Trade:
- Parties & Description: Clearly identify the supplier, customer, and exact goods/services.
- Price & Payment: Specify price (incl. GST), deposit requirements, payment methods, due dates (e.g., 20th month following invoice), and conditions for progress payments.
- Ownership & Security (PPSA): The supplier retains ownership (title) until full payment, often registering a security interest under the Personal Property Securities Act 1999 (PPSA).
- Delivery & Risk: Approximate delivery times, supplier not liable for delays, risk transfers to customer upon delivery.
- Default & Recovery: Rights to suspend work, cancel contracts, charge default interest, and recover debt collection costs and legal fees if payment is late.
- Consumer Guarantees Act (CGA): Acknowledge its requirements, especially for the enforceability of title retention clauses.
- On Ownership: “Ownership of the Goods/services remains with the Supplier until full payment is received.
- On Late Payment: “Interest at 3.5% per month will be charged on overdue accounts, plus all costs of debt recovery, including legal fees”.
