Terms of Business Template for Retail Businesses (UK 2025)
Last updated: February 2025
Why Retail Businesses Need a Terms of Business
Retail terms of business govern wholesale supply relationships, concession agreements, and franchise arrangements rather than direct consumer sales, which are covered by consumer-facing terms and conditions. These must address ordering and delivery procedures, quality standards and returns policies for defective goods, payment terms including volume discounts and settlement incentives, and the increasingly important requirements of ethical sourcing and supply chain transparency.
Key Clauses for Retail
- Ordering, delivery, and acceptance procedures for goods
- Quality standards, inspection rights, and defective goods returns
- Payment terms with volume discount and settlement incentive structures
- Ethical sourcing, sustainability, and supply chain transparency requirements
Common Mistakes
- Not including a clear right to inspect goods and reject non-conforming deliveries within a specified timeframe
- Failing to address ethical sourcing and modern slavery compliance in the supply chain
Template Sections
- Ordering and delivery procedures
- Quality standards and returns process
- Ethical sourcing and supply chain compliance
FAQ
What quality inspection rights should retail terms of business include?
Include the right to inspect goods upon delivery and reject non-conforming items within a reasonable timeframe, typically 48-72 hours. Specify quality standards by reference to samples, specifications, or industry standards. Include provisions for partial rejection where only some goods in a delivery are defective, and the supplier's obligation to collect and replace rejected goods at their cost.
Should retail terms of business address modern slavery and ethical sourcing?
Yes. The Modern Slavery Act 2015 requires businesses with turnover exceeding 36 million pounds to publish a modern slavery statement. Regardless of size, include ethical sourcing provisions requiring suppliers to comply with modern slavery legislation, maintain transparent supply chains, and permit auditing. This protects the retailer's reputation and fulfils increasing consumer and regulatory expectations.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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