As a seller of goods or services, it is important that you have rules by which you trade with the other party. While there are certain protections set in place by statute (eg: The Australian Consumer Law), many matters are entirely negotiable. As a seller, if you clearly set out the terms of trade and bind the buyer to these terms, you galvanize your business against such matters as late payment, non-payment and effectively retaining title to the goods until paid in full. The introduction of the Person Property Securities Act (PPSA) has made retention of title more particular and you as a supplier of goods you will want to have a tight PPSA clause in your terms of trade. Without PPSA registration you could be left with a powerless clause. This is just one thing that must be considered when drafting terms of trade.
These terms are the basis on which your business trades. If you are dealing with a business bigger than yours, they might present their terms of trade to you. This can be quite dangerous as the seller, as it will usually put a greater onus that required by law on you to deliver on time and to a particular quality and at the same time relax the payment terms of the buyer. So, if you do not take the initiative and set the terms on which your business trades, you will be stuck with the terms set by the person you are doing business with, who is likely to protect the interests of their business, not yours.
Sometimes people go for a standard template, which we do not recommend at all. Terms of trade are specific to a particular business and usually a lot of money rides on getting it right.