Contracts and terms for small founders
In short: Whoever sells something concludes contracts, often without noticing. Clear conditions avoid disputes. For sales to private persons online, fixed legal duties also apply.
When does a contract arise?
A contract arises through offer and acceptance. In an online shop the product page is usually only an invitation; the customer makes the offer by clicking “buy”, you accept it, for example by a confirmation or by shipping. An oral agreement also counts but is hard to prove. It pays to put it in writing.
What belongs in an order
- Who does what (describe the service exactly, with acceptance criteria).
- Price and payment term.
- Schedule and what happens in case of delay.
- Change requests: how many rounds of corrections are included?
- Rights: who gets which rights of use in the result (Copyright and licences for your own projects)?
- Liability and warranty, as far as legally limitable.
- Termination/withdrawal.
Terms and conditions (AGB)
General terms are pre-formulated rules for many contracts. They must be accessible before the contract is concluded and must not disadvantage customers unreasonably (§§ 305 ff. BGB). Invalid clauses fall away. Copying someone else’s terms is risky (copyright and they often do not fit). For simple cases a few clear sentences in the offer are often enough.
Duties in online trade with consumers
- Imprint and provider identification.
- Price details (final prices, shipping costs).
- Withdrawal information: 14-day right of withdrawal for distance selling, with exceptions for certain digital content, see Withdrawal and cancellation for digital subscriptions.
- Privacy policy (data processing agreements).
- “Button solution”: the order button must clearly state the payment obligation (“order with obligation to pay”).
Minors
Minors as providers need the consent of their parents and the family court for a trade. Minors as customers conclude contracts with limited effect (pocket-money rule, § 110 BGB).
This is an overview, not legal advice. For larger orders use legal advice or consumer centre/chamber advice.
See also: Writing invoices