Who are you doing business with?

Before you make a contract you should be confident that the other party is capable of completing their commitment.  That’s “Due Diligence” which, for a big contract, can be complex.  For any contract the essential is that you know who you are doing business with.  If things go wrong you need to know who you can complain to or, if you have to, sue.  You should give your customers confidence in you by making it easy for them to confirm who you are.

There are rules about this.  It’s right to be suspicious of businesses that don’t meet these rules.  They may just not be very competent administratively (which may be a risk) or they may have something to hide.  Rogues are experts at making it difficult to find out who you are actually contracting with.  That’s fundamental to any business relationship.

Whether your business is trading on-line or not, it is almost certainly affected by the E-Commerce Regulations.  Unfortunately a lot of website designers seem to be ignorant of them.  BIS issue a Guide on Compliance.

Similar rules apply to all business communications, i.e., letters, order forms, emails etc.  There is also a rule that the registered name is displayed at any location at which a company or LLP carries on business (unless used primarily for living accommodation).  For companies see The Companies (Trading Disclosures) Regulations 2008 2008/495 in force since 1st October 2008.

Those for partnerships they are slightly complicated;

  • Partners names do not have to be given where you are a Sole Trader using only the name of the Sole Proprietor or a Partnership whose name is the names of all the Partners (e.g., “Smith and Jones” if Ms Smith and Ms Jones are the only partners.)
  • Initials & surname are sufficient, though if full names are given for some they should be given for all
  • If there are more than 20 Partners it is sufficient for the notepaper to state that their names are available for inspection at the address given (this applies also to LLPs).

Businesslink is a good place to start.

Contact | Neil Howlett