Why are general terms and conditions of sale essential?

First of all, every document must include certain mandatory legal notices: your full contact details, those of the customer, the intra-Community VAT numbers, the descriptions of the products and services sold, the unit prices, the quantities sold (…).

Please note that these mandatory legal notices differ from country to country, and it is vital to find out about your obligations.
Please also note that some trades must display specific legal notices related to their activity.

In addition to these mandatory notices, there is the question of general terms and conditions of sale (known in French as CGV).

Let us first point out that having general terms and conditions of sale in no way protects you from legal action in the event of a disagreement with a customer, but they can also considerably limit the other party's scope for action, and even the amount of compensation you might have to pay.

General terms and conditions of sale: what are we talking about?

General terms and conditions of sale take the form of a document that defines the contractual framework of the business relationship between a professional (you, a legal entity) and your customer, whether a private individual (the consumer) or a business. It is the seller who draws up this document.

To be valid, the general terms and conditions of sale must be in writing and linked to your sales documents (quotes, orders or invoices). The customer must read them and accept them in full before entering into the business relationship that will bind you.
Please note that some customer companies set their own purchasing conditions against your general terms and conditions of sale; in that case, a specific negotiation will have to take place before any transaction is concluded.

Why have general terms and conditions of sale?

General terms and conditions of sale are very important because they set a legal and transactional framework for business relationships.

Depending on the case, they set out the prerequisites for performing a service or delivering goods, or establish the customer's theoretical maximum payment period (…), subject to compliance with the applicable national and EU legislation and with the rules specific to certain fields.

They protect both parties (customer and seller) in the event of a dispute, inform the customer about how your services work, specify each party's obligations and responsibilities, and sometimes even set penalties, for example in the event of late delivery.

Are general terms and conditions of sale mandatory?

In France as in Luxembourg, professionals are required to provide their general terms and conditions of sale to their private customers (B2C) and have them accepted before the sale in order to make them enforceable.

In a transaction between professionals (B2B), having general terms and conditions of sale and getting your customer to approve them before the sale is not mandatory but strongly recommended. If the customer asks you for your general terms and conditions of sale, for example because you mention them on your quote and have therefore informed them of their existence, you will be obliged to provide them.

Who should draft your general terms and conditions of sale?

You can choose to draft your general terms and conditions of sale yourself.
However, be careful not to include unfair terms, which could backfire on you in the event of a dispute ending up in court. An unfair term is a term that creates a significant imbalance between the rights and obligations of the two parties in favour of the seller. You can find the list of terms considered unfair on the European Union website; to find out more, click here.

It is also inadvisable to copy your competitors' general terms and conditions of sale. Firstly, because they are normally protected by the copyright of whoever drafted them. But also because terms drafted without taking into account the way your business operates would not be personalised and would not cover all its specific features. The risk is significant, and it should be stressed that some terms may not be valid depending on the status of the customer (consumer protection) or on the specific subject matter of your trade.

In any case, we recommend having your general terms and conditions of sale drafted by a qualified professional, who will look into how your business operates and what needs to appear in the wording to give you real protection, and who will use the established legal formulations.

Likewise, we also recommend having them regularly reviewed, corrected and supplemented by an expert, because the law is constantly changing and what was possible for you yesterday may no longer be possible today.

Do you have general terms and conditions of sale?

Make it known! Add them to eKo.
In eKo CRM, when you send your contracts for signature, your general terms and conditions of sale will automatically be added to the PDF to be signed by the customer, by hand or electronically. They will never be able to tell you later that they were unaware of them.

More information at:

www.entreprendre.service-public.fr

www.legilux.public.lu

And how does it work in eKo?

In eKo CRM, you can upload your general terms and conditions of sale so that every time you print your quotes and invoices or send them by e-mail, they are automatically appended to the document in the same PDF.

Likewise, eKo CRM can be configured so that when you send your quotes for electronic signature, your general terms and conditions of sale also come back to you signed once the customer has approved them.

Keep it in mind!

Conclusion

In short, taking care over your sales documents and including well-drafted general terms and conditions of sale is not just a formality: it is a real safeguard to frame your business relationships, limit disputes and strengthen your company's credibility. Leave nothing to chance, get support if necessary, and do not forget to update your general terms and conditions of sale regularly. Your business will be all the better protected.