Many years ago, FTMA worked with AMPAC Debt Recovery to develop a comprehensive Terms of Trade & Guarantee for our members. This has been updated several times over the years to ensure the document protected members and included the right legal terms.
We have once again gone to AMPAC Debt Recovery and had their lawyers go through the document to make it a more user-friendly document. It now reads more smoothly, with ‘Our’ ‘We’ and ‘Us” instead of the member’s name having to be inserted on each occasion.
They have also adjusted the interest rates down to 1% per month compounded monthly to be closer to a genuine pre-estimate of our client’s losses rather than a penalty of 14%. This way, members have a better chance of having interest awarded as we must remember that the Courts will not award interest that acts as a penalty. The interest must reflect the predicted or actual loss of our client’s member. 1% per month compounded is still high, but it’s arguable. The current post-Judgment interest rate set by the Court is about 7% per annum. Pre-Judgment interest is about 5% per annum.
The Terms of Trade & Guarantee has been amended to reflect –
- A deposit may be payable prior to manufacture of the Goods.
- For Cash on Delivery Customers, the balance of the purchase price is due strictly upon delivery (COD date). If payment is not made, delivery will not occur, and Clause 4 below applies.
- For Customers who have entered into a Credit Account pre-approved by Us the purchase price is payable strictly on or before 30 days from the delivery date of the Goods (‘the due date’).
The requirement for 50% upfront payment has also been removed.
Overall, the lawyers were extremely happy with the document, but after re-reading, they adjusted some of the wording to clear things up and make it a stronger document for the fabricators.
FTMA has spent thousands over the years to ensure this document covers everything you need to cover your business and we encourage FTMA Members to access the new document on the members only section of the website, and either implement the policy, or ensure your current document covers all the important steps outlined in our Terms of Trade & Guarantee.
If members have any queries regarding this new document, please give me a bell, otherwise it is available on the members only section of the website.