Start ups are new business ventures and during their early days of setting up, there is a long list of tasks and priorities that demands their undivided attention. It includes emancipating innovative ideas, building impactful strategies, seeking best sources of finance, launching of products & services, marketing tactics and many more. The thing which may come in the last of the list or stay forgotten in the entire start-up process is drafting the terms & conditions as well as privacy policy of your business.
Have you missed out the important task of setting the ‘Terms & Conditions’ of your trade?
‘Terms and Conditions’ or ‘Privacy Policy’ are the legal documents that define the conduct of consumer-business relationship and mutually bind both the parties, once accepted & signed. Terms & Conditions, on one hand, define the rights & obligations of both enterprise as well as consumer, where, privacy policy, on the other hand, addresses the rules that express how businesses retain and manage customer’s personal information.
After considering the above, it is quite clear, that, Start-ups who are on the verge of establishing their online presence need to draft their terms of trade & privacy policy properly. It is not only legally important, but also necessary for the efficient functioning of your business. So, if you have kept it last in your priority list, you must make serious changes in the list.
Why Terms of Trade & Privacy policy are essential contracts?
We readily understand the importance of these documents but somehow miss to learn the reasons for drafting terms and conditions as well as privacy policy for ones’ business. Let’s take a look on that aspect:-
A proper drafting of terms & policy protect the start-ups from facing any serious legal claims. Terms & conditions express procedure of business operations, outline the liabilities of the company and legally bind the consumer & business in a contract that is acceptable in the eyes of law.
- Provide clarity to the consumer, partners or suppliers:
The terms & conditions plays a significant role in clarifying related parties which include consumer, supplier or JV partner about their duties, responsibilities, authorities & liabilities.
- Mitigate unforeseen risks:
With proper implementation of terms & privacy policy, the company can actually avoid risks arising due to misunderstanding or uncertainty. Every word that is in writing can act as evidence or proof before the court and thus, safeguard the start-ups from such risks.
- Privacy policies retain your customer’s trust:
A well-defined privacy policy must provide lucid statements on collecting and securing your customer’s data. A flexible policy with clear perspective is essential to protect the start-ups from customer complaints or claims on misusing provided information or any mislead made by the enterprise etc.
- Setting payment terms beforehand can protect your business cash flow:
With apt payment terms in our Terms & Conditions, you can avoid spending time & resources on debt collection. Infact, you can get ensured on getting payments on time.
How to customize terms & conditions that hold relevance to your start-up?
With proper implementation of terms & conditions, Start-ups can legally cover themselves from the legal claims, consumer-complaints and uncertainties. Hence, it is really crucial to understand the draft of terms that can effectively establish the foundation for interaction with your customer in view to your responsibilities or liabilities.
Start-ups can customize the information that they want to provide in the draft, on the basis of its business relevance. For instance:- products & services, terms for payment, guarantees or warranties, copyrights or trademark, law governing the terms & conditions of the start-up and open clause with regard to any further amendments in the terms & conditions.
Interestingly, internet gives easy access to start-ups in finding generic templates as tailored suitably for different business segments. It can help in initiating the draft but it has to be completely applicable to your business. A comparative review of other company’s terms and conditions in the similar segment can broaden the knowledge and helps in choosing the relevant terms for the enterprise.
Attorney service is advisable……..why?
A lawyer is specialized in building different kinds of legal contracts. It would be apt to render the services of an advocate when it comes to either drafting or checking the draft of terms & conditions of any start-up. His/her expertise in the Acts, Provisions and drafting contracts shall leave no scope for loopholes, mistakes or miss-outs.
How to customize Privacy Policy, if needed for your start-up enterprise?
Privacy Policies are required when there is a need to collect the personal information of your customers by way of transaction or if they are to visit your social media page or website. It guarantees the user/consumer on way of gathering information, sharing of information or using the same. It also ensures security as well as confidentiality of their personal data.
A start-up must make a list of Privacy Policy Clauses that are relevant for your business enterprise. Clauses with regard to sharing or disclosing of information & to whom, log data provision, contact information if customers desire to ask questions with regard to privacy policy, age restricted clause etc. can be mentioned in the privacy policy.
With well-drafted privacy policy, start-ups can give their consumers an exit choice, if they don’t agree to the privacy policy or keep the policy open for any future updates or modifications.
Again, with internet, start-up companies get a fair view of other company’s privacy policy, which are in same line of business or can check out the sample general templates of privacy policy. It gives them broader as well as relative understanding of the legal aspects or clauses as required in its Privacy Policy.
Hire a Lawyer for reviewing or drafting
A start-up can get the services of lawyer in order to safeguard itself from legal claims from consumer. It would be wiser to spend on lawyer’s fees than spending a lot on settling unnecessary legal claims or court fees. His/her specialization can help you in drafting a good privacy policy that can protect you and your new venture.
Conclusion
A commencement of new enterprise is a huge task and involves making right decisions. One of the wise decisions that every start-up company should make is to draft relevant terms & conditions and privacy policy that has the power as well as the potential to protect your new venture from legal complications and hassles.
