diff --git a/transaction_parser/tests/test_sales_order.py b/transaction_parser/tests/test_sales_order.py
index 1f419a6..72e156f 100644
--- a/transaction_parser/tests/test_sales_order.py
+++ b/transaction_parser/tests/test_sales_order.py
@@ -300,6 +300,63 @@ def test_item_processing(self, mock_parse):
         self.assertEqual(item.doctype, "Sales Order Item")
         self.assertEqual(item.parentfield, "items")
 
+    # ----------------------
+    # Terms and Conditions Tests
+    # ----------------------
+
+    def test_get_terms_with_local_terms(self):
+        """Test terms generation from local_terms data."""
+        controller = SalesOrder()
+        controller.data = self.sample_data
+
+        terms = controller.get_terms()
+
+        self.assertIn("Standard terms and conditions", terms)
+        self.assertIn("Incoterms: EXW", terms)
+
+    def test_get_terms_with_missing_local_terms(self):
+        """Test terms generation does not fail when local_terms is None.
+
+        The AI response may omit `local_terms` or return it as null, so
+        get_terms must handle a None value gracefully instead of raising
+        AttributeError.
+        """
+        modified_data = copy.deepcopy(self.sample_data)
+        modified_data.local_terms = None
+
+        controller = SalesOrder()
+        controller.data = modified_data
+
+        self.assertEqual(controller.get_terms(), "")
+
+    def test_get_terms_with_partial_local_terms(self):
+        """Test terms generation when local_terms has only a description."""
+        modified_data = copy.deepcopy(self.sample_data)
+        modified_data.local_terms = frappe._dict(
+            {"description": "Only description", "incoterms": None}
+        )
+
+        controller = SalesOrder()
+        controller.data = modified_data
+
+        self.assertEqual(controller.get_terms(), "Only description")
+
+    def test_get_terms_with_missing_local_terms_key(self):
+        """Test terms generation when the local_terms key is completely absent.
+
+        Unlike an explicit None value, this verifies get_terms relies on
+        frappe._dict returning None for a missing attribute rather than the
+        key merely being present with a null value.
+        """
+        modified_data = copy.deepcopy(self.sample_data)
+        if hasattr(modified_data, "local_terms"):
+            delattr(modified_data, "local_terms")
+
+        controller = SalesOrder()
+        controller.data = modified_data
+
+        self.assertEqual(controller.get_terms(), "")
+
     # ----------------------
     # Integration Tests
     # ----------------------
diff --git a/transaction_parser/transaction_parser/controllers/transaction.py b/transaction_parser/transaction_parser/controllers/transaction.py
index eca493e..dcf5545 100644
--- a/transaction_parser/transaction_parser/controllers/transaction.py
+++ b/transaction_parser/transaction_parser/controllers/transaction.py
@@ -496,11 +496,11 @@ def get_payment_schedule_doc(self, term):
     ### Terms and Conditions
 
     def get_terms(self) -> str:
-        terms = (
-            description if (description := self.data.local_terms.description) else ""
-        )
+        local_terms = self.data.local_terms or frappe._dict()
+
+        terms = local_terms.description or ""
 
-        if incoterms := self.data.local_terms.incoterms:
+        if incoterms := local_terms.incoterms:
             terms += f"\nIncoterms: {incoterms}"
 
         return terms