The Procurement Glossary » Terms and Conditions (T&Cs)
Terms and Conditions (T&Cs)
Contracts & Legal
Also known as: T&Cs
Definition
The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies.
Explanation
Buyers and suppliers each have standard T&Cs; which prevails ('battle of the forms') matters legally. Agreeing terms up front — payment, delivery, warranty, liability — prevents costly ambiguity when something goes wrong.
Example
The PO states the buyer's T&Cs apply, overriding the supplier's terms printed on its acknowledgement.
Related terms
- Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
- Battle of the Forms — The legal contest over whose standard terms govern a deal when buyer and supplier each try to impose their own.
- Warranty — A supplier's assurance that goods or services will meet defined standards, with a remedy if they do not.
- Indemnity — A contractual promise by one party to cover specified losses or liabilities suffered by the other.
Frequently Asked Questions
What is Terms and Conditions (T&Cs)?
The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies. Buyers and suppliers each have standard T&Cs; which prevails ('battle of the forms') matters legally. Agreeing terms up front — payment, delivery, warranty, liability — prevents costly ambiguity when something goes wrong.
Can you give an example of Terms and Conditions (T&Cs)?
The PO states the buyer's T&Cs apply, overriding the supplier's terms printed on its acknowledgement.
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