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Protecting your hospitality business – 4 tips for your T&Cs
March 31, 2025
Your terms and conditions can be used as a shield against potential liability – provided that they are well-drafted and properly incorporated into your contracts.
Our commercial law experts highlight below 4 key considerations which you should ensure are addressed in your contractual relationships:
A very common area for a contract dispute is where the parties to a contract have a misunderstanding as to what is being bought and supplied. Be as clear as possible with your customers and suppliers as to what you are expecting to provide or receive under the terms of a contract. This is especially important when dealing with individual consumers who might not be familiar with industry jargon.
If possible, provide an itemised breakdown of what is being supplied, over what period and for what price. In addition to what you are providing, be clear about what information or documentation your customers need to share with you (and by when) to enable you to be able to fulfil your part of the contract.
Also consider, where relevant, ensuring you have built in flexibility/contingency plans should things change in the future.
Have clearly defined policies and procedures with regards to the payment of deposits, when staged payments will become due, cancellation and refund policies, the consequences of late payment and make sure these are drawn to the attention of your customers. This will set down your expectations with your customers at the outset and avoid any costly misunderstandings later. Also, be clear where you might be incurring fees with any third-party vendors, and obtain money on account for those fees before you incur them to ensure you are not left out of pocket.
Where you are dealing with individual consumers, take appropriate advice to ensure that your terms do not fall foul of consumer protection legislation.
Where you are sourcing products or services from a third-party supplier, ensure you have proper terms and conditions in place with them so that you can hold them to account if anything were to go wrong. For example, if the provision of the goods and services is time-sensitive then make sure that it is confirmed in the contract that the supplier will meet those deadlines. And what are the consequences if they fail to do so? Consider whether it is appropriate to include a liquidated damages mechanism, and/or whether the supplier should indemnify you for any losses you might incur as a result of their default.
You want to ensure that your own liability to your customer is limited, ideally to the cost you are receiving for your own services. You would also want to exclude any liability for issues which are outside of your control, and anything which is caused as a result of your customer’s breach.
Again, when dealing with individual consumers, be mindful of the consumer protection legislation.
If you are contracting your supplier’s terms, make sure that the supplier’s liability to you is not limited to an unreasonable level. Otherwise, you could be left out of pocket with no recourse against the supplier.
In conclusion, well-crafted terms and conditions are essential for protecting your hospitality business from potential risks and disputes. By clearly setting expectations, securing your revenue, holding suppliers accountable, and limiting your exposure, you can significantly reduce the likelihood of costly misunderstandings. Ensuring your T&Cs are comprehensive and compliant with relevant laws will provide a strong foundation for managing both customer and supplier relationships with confidence.
If you need advice drafting T&Cs for your business, contact one of our expert commercial solicitors using the contact form, or via 02920 829 100 to find out how we can support you and your business.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
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