What is the difference between 'terms and conditions' and 'policies'?

• A. Terms and conditions set specific contractual rights and obligations; policies are broader rules guiding behavior.
• B. Policies are binding contracts; terms and conditions are guidelines.
• C. Terms and conditions are internal rules; policies apply to customers.
• D. Policies always require signatures; terms don't.

Answer: (A)

Terms and conditions set out the specific rights and obligations that form a contract between a customer and the business. They spell out concrete details like payment, delivery, liability, and what happens if something goes wrong, and when the customer agrees, these obligations are legally binding for both sides.

Policies are broader rules that shape how the business operates and makes decisions. They cover areas like privacy, refunds, acceptable use, or safety, and they guide behavior and processes for staff and customers alike. They aren’t usually a contract with a customer unless explicitly included, but they help ensure consistency and compliance across the organization.

So the difference is that terms and conditions establish enforceable contractual rights and duties, while policies provide the wider framework for how the business runs and how people should act.