According to article L 441-1 of the French Commercial Code, general sales conditions are the “sole basis for commercial negotiation”. They contain all the conditions under which you and your customer are bound. It is therefore particularly important that your General Terms and Conditions of Sale contain not only the mandatory clauses defined by law, but also any additional clauses that may protect you in the event of a dispute. Incomplete or poorly drafted General Sales Conditions can backfire.
Mandatory information in the General Terms and Conditions of Sale for services
Elements of price determination
Your general terms and conditions of sale must indicate how your prices are set. For example, for a hotel service, you could specify that prices are set according to room type, number of nights, booking dates, etc., and that the price of each room is available on the establishment’s website.
For a catering service, you can specify that prices are set according to the menu of the day, available on site and/or online, and that these prices include all taxes.
It’s also in this section that you can anticipate additional costs, for adding a bed to a room for example.
Terms of payment
Terms of payment cover a range of information: accepted payment methods, payment deadlines, conditions of application and interest rate for late payment penalties, the amount of the fixed indemnity for collection costs, etc. These clauses are not to be neglected. These clauses are not to be neglected: while they protect you in the event of litigation, they can also deter dishonest partners and prevent disputes.
This section also includes information on deposits and other pre-authorized payments you may be required to make when booking a hotel or restaurant. The general terms and conditions of sale must specify the amount to be paid on reservation, the terms of payment, and any conditions for reimbursement of these sums. Once again, these clauses protect you from cancellations and other dishonest partners.
For more information on pre-authorization in the hotel and restaurant sector, please refer to our article ” Bank imprinting: how to implement it without risk “.
Information specified in article L 111-2 of the French Consumer Code
The French Consumer Code requires service providers to supply their customers and other partners with information on their contact details, their service provision activity and other contractual terms and conditions, the list and content of which are set by decree by the Conseil d’Etat.
Mandatory information in General Terms and Conditions of Sale for consumers
Articles R 111-1 et seq. and R 221-1 et seq. of the French Consumer Code list a range of information that professionals must provide to their consumer customers.
Optional information that can be added to your General Terms and Conditions of Sale
In addition to the compulsory information, the General Sales Conditions may contain a set of clauses which also regulate the relationship between you and your customers or partners.
Cancellation clause
It’s up to you to define the conditions under which you will accept a customer’s cancellation of a hotel or restaurant reservation, and the financial terms involved. In the case of accommodation or catering services, consumers do not have the 14-day right of withdrawal provided for distance contracts.
Customer default clause
Particularly in the hotel sector, this clause can include a security deposit or bank imprint to cover any damage or theft committed by the customer during their stay.
Limitation of liability
It limits the amount of damages that can be claimed in the event of the seller failing to meet one of its commitments. For example, if you are unable to find your customers a cab to take them to the station at the end of their stay, you cannot be held responsible if they miss their flight.
Jurisdiction clause
Jurisdiction clauses determine which court in which city is to be seized in the event of a dispute. In principle, these clauses can only be applied to business customers. This means that, in the event of a dispute being brought before a court, you won’t have to endure proceedings far from your head office.
Your General Terms and Conditions of Sale are intended to apply to all your transactions, and will form the basis of any dispute. It is essential that they are complete and intelligible. We can help you draw them up so that they not only comply with legal requirements, but also reflect the terms and conditions you wish to put in place.
