How to Create Terms and Conditions
Create terms and conditions by identifying your business model, drafting clauses covering scope of services, payment, liability, cancellation, data protection, and dispute resolution, and ensuring compliance with the Consumer Rights Act 2015 if selling to consumers.
Last updated: February 2025
Step-by-Step Guide
Identify your audience and business model
Determine whether your terms are B2B, B2C, or both, as consumer protection laws impose additional requirements for B2C terms.
- •B2C terms must comply with the Consumer Rights Act 2015 unfair terms provisions.
Draft the core commercial clauses
Include scope of services or products, pricing, payment terms, delivery, and acceptance criteria.
- •Be specific about what is and is not included in the service.
Add liability and warranty provisions
Set appropriate liability caps and disclaimers. For B2C, you cannot exclude liability for faulty goods or services that do not match the description.
- •Never attempt to exclude liability for death or personal injury caused by negligence.
Include cancellation and refund terms
For online sales to consumers, include the 14-day cooling-off period required by the Consumer Contracts Regulations 2013.
- •Clearly state how consumers can exercise their cancellation rights.
Add data protection and governing law clauses
Include a reference to your privacy policy and state that the terms are governed by the laws of England and Wales.
- •Link to a separate detailed privacy policy rather than embedding it in T&Cs.
Legal Requirements
B2C terms must comply with the Consumer Rights Act 2015 (unfair terms), the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (distance selling), and UK GDPR. B2B terms are subject to the Unfair Contract Terms Act 1977 reasonableness test for exclusion clauses.
Common Mistakes
Template / Example
When to Get a Solicitor
Recommended for B2C businesses to ensure consumer law compliance. Also advisable for high-value B2B services or where you are using terms to allocate significant risk.
FAQ
Do terms and conditions need to be accepted to be binding?
Yes. The customer must have a reasonable opportunity to read the terms and indicate acceptance before the contract is formed, whether by ticking a box online or signing in person.
Can I copy another company's terms and conditions?
No. Terms must be tailored to your specific business, products, and legal obligations. Copying another company's terms may not cover your situation and could infringe their copyright.
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