diff --git a/App/CLAUDE.md b/App/CLAUDE.md
index 4213e2a..24ac5d3 100644
--- a/App/CLAUDE.md
+++ b/App/CLAUDE.md
@@ -106,7 +106,12 @@ The three PO forms (`new-po-form`, `edit-po-form`, `manager-edit-po-form`) rende
 
 ### Terms & Conditions catalogue (issue #11)
 
-Same admin-list-feeds-PO-dropdown pattern as Delivery Locations. `TermsCondition` (`category: TermsCategory` enum + `text` + `isActive`) is an admin-managed clause library, managed at `/admin/terms` (gated by **`manage_terms`** — Manager + SuperUser + Admin; CRUD mirrors `/admin/delivery-locations`). The migration **seeds** the prior `TC_DEFAULTS` wording as the starting clauses. The five **named** PO T&C slots (Delivery / Dispatch / Inspection / Transit Insurance / Payment Terms — the `tc*` columns, mapped via `lib/terms.ts` `TC_FIELD_CATEGORY`) become a shared `<TermsField>` **combobox** (native `<input list>` + `<datalist>`) — type a one-off clause or pick a catalogued one — suggesting the active clauses of that category (`lib/terms-data.ts` `getActiveTermsByCategory`). **"Others" stays free text**, and the fixed boilerplate lines (`TC_FIXED_LINE` / `TC_FIXED_LINE_2`) are not catalogued. The `tc*` columns stay **free-text snapshots** (export/import unchanged); since the slot is a free-text combobox, any current/custom value is preserved as-is. No "work order" type — POs only (per the issue's steer).
+Admin-managed T&C with **user-defined categories** (not a fixed set) feeding a **dynamic PO editor**.
+
+- **Models:** `TermsCategory` (`name` unique + `sortOrder` + `isActive`) and `TermsCondition` (`categoryId` FK + `text` + `isDefault` + `isActive` + `sortOrder`). Managed at `/admin/terms` (gated by **`manage_terms`** — Manager + SuperUser + Admin). The migration **seeds every standard PO T&C line** as a clause: the five named slots keep their wording, the previously-fixed boilerplate lines live under a **"General"** category, and an empty **"Others"** category is provided. `isDefault` clauses pre-fill new POs.
+- **Admin** (`/admin/terms`): the Add/Edit clause form's category is a combobox — typing a new name **creates the category** ("add a new category along with the clause"). `isDefault` is a checkbox.
+- **PO editor** (`components/po/po-terms-editor.tsx`, used by all three PO forms): a dynamic list — **"+ Add term"** appends a row; each row is a category combobox + a clause combobox (both `<input list>` so you can pick a catalogued value or type a one-off). New POs pre-fill from `getDefaultPoTerms()`; editing a PO loads `po.terms`, or (for pre-feature POs) `legacyPoTerms()` maps the old `tc*` columns + fixed lines onto rows.
+- **Storage:** the chosen rows are a JSON **snapshot** on `PurchaseOrder.terms` (`[{ category, text }]`). It **supersedes** the legacy `tc*` columns for the export (`route.ts`) and PO detail; old POs with null `terms` still render from `tc*` + the fixed lines. `lib/terms.ts` `parsePoTerms` validates the JSON; `lib/terms-data.ts` exposes `getTermsCatalogue` / `getDefaultPoTerms`. No "work order" type — POs only (per the issue's steer).
 
 ### PO Numbering (`lib/po-number.ts`)
 
diff --git a/App/app/(portal)/admin/terms/actions.ts b/App/app/(portal)/admin/terms/actions.ts
index bf406ad..6fdce44 100644
--- a/App/app/(portal)/admin/terms/actions.ts
+++ b/App/app/(portal)/admin/terms/actions.ts
@@ -5,11 +5,12 @@ import { db } from "@/lib/db";
 import { hasPermission } from "@/lib/permissions";
 import { revalidatePath } from "next/cache";
 import { z } from "zod";
-import { TermsCategory } from "@prisma/client";
 
 const schema = z.object({
-  category: z.nativeEnum(TermsCategory),
+  // A category NAME — picked from the existing list or typed to create a new one.
+  categoryName: z.string().trim().min(1, "Category is required"),
   text: z.string().trim().min(1, "Clause text is required"),
+  isDefault: z.boolean().default(false),
 });
 
 type Result = { ok: true } | { error: string };
@@ -22,14 +23,40 @@ async function guard(): Promise<{ ok: true } | { error: string }> {
   return { ok: true };
 }
 
+function parse(formData: FormData) {
+  return schema.safeParse({
+    categoryName: formData.get("categoryName"),
+    text: formData.get("text"),
+    isDefault: formData.get("isDefault") === "on" || formData.get("isDefault") === "true",
+  });
+}
+
+// Find a category by name (case-insensitive), creating it (appended to the end)
+// if it doesn't exist — this is how new categories are added "along with clauses".
+async function ensureCategory(name: string): Promise<string> {
+  const existing = await db.termsCategory.findFirst({
+    where: { name: { equals: name, mode: "insensitive" } },
+    select: { id: true },
+  });
+  if (existing) return existing.id;
+  const max = await db.termsCategory.aggregate({ _max: { sortOrder: true } });
+  const created = await db.termsCategory.create({
+    data: { name, sortOrder: (max._max.sortOrder ?? 0) + 1 },
+  });
+  return created.id;
+}
+
 export async function createTerm(formData: FormData): Promise<Result> {
   const g = await guard();
   if ("error" in g) return g;
 
-  const parsed = schema.safeParse(Object.fromEntries(formData));
+  const parsed = parse(formData);
   if (!parsed.success) return { error: parsed.error.errors[0].message };
 
-  await db.termsCondition.create({ data: { category: parsed.data.category, text: parsed.data.text } });
+  const categoryId = await ensureCategory(parsed.data.categoryName);
+  await db.termsCondition.create({
+    data: { categoryId, text: parsed.data.text, isDefault: parsed.data.isDefault },
+  });
   revalidatePath("/admin/terms");
   return { ok: true };
 }
@@ -38,10 +65,14 @@ export async function updateTerm(id: string, formData: FormData): Promise<Result
   const g = await guard();
   if ("error" in g) return g;
 
-  const parsed = schema.safeParse(Object.fromEntries(formData));
+  const parsed = parse(formData);
   if (!parsed.success) return { error: parsed.error.errors[0].message };
 
-  await db.termsCondition.update({ where: { id }, data: { category: parsed.data.category, text: parsed.data.text } });
+  const categoryId = await ensureCategory(parsed.data.categoryName);
+  await db.termsCondition.update({
+    where: { id },
+    data: { categoryId, text: parsed.data.text, isDefault: parsed.data.isDefault },
+  });
   revalidatePath("/admin/terms");
   return { ok: true };
 }
@@ -61,7 +92,7 @@ export async function deleteTerm(id: string): Promise<Result> {
   const g = await guard();
   if ("error" in g) return g;
 
-  // Safe to delete: POs keep their T&C as text snapshots, so no PO references this row.
+  // Safe to delete: POs keep their T&C as a JSON snapshot, so no PO references this row.
   await db.termsCondition.delete({ where: { id } });
   revalidatePath("/admin/terms");
   return { ok: true };
diff --git a/App/app/(portal)/admin/terms/page.tsx b/App/app/(portal)/admin/terms/page.tsx
index 5c73169..837effa 100644
--- a/App/app/(portal)/admin/terms/page.tsx
+++ b/App/app/(portal)/admin/terms/page.tsx
@@ -12,16 +12,22 @@ export default async function TermsPage() {
   if (!session?.user) redirect("/login");
   if (!hasPermission(session.user.role, "manage_terms")) redirect("/dashboard");
 
-  const terms = await db.termsCondition.findMany({
-    orderBy: [{ category: "asc" }, { isActive: "desc" }, { createdAt: "asc" }],
-  });
+  const [terms, categories] = await Promise.all([
+    db.termsCondition.findMany({
+      orderBy: [{ category: { sortOrder: "asc" } }, { isActive: "desc" }, { sortOrder: "asc" }, { createdAt: "asc" }],
+      include: { category: { select: { name: true } } },
+    }),
+    db.termsCategory.findMany({ orderBy: [{ sortOrder: "asc" }, { name: "asc" }], select: { name: true } }),
+  ]);
 
   return (
     <TermsTable
+      categoryNames={categories.map((c) => c.name)}
       terms={terms.map((t) => ({
         id: t.id,
-        category: t.category,
+        categoryName: t.category.name,
         text: t.text,
+        isDefault: t.isDefault,
         isActive: t.isActive,
       }))}
     />
diff --git a/App/app/(portal)/admin/terms/terms-form.tsx b/App/app/(portal)/admin/terms/terms-form.tsx
index aa73802..dccbece 100644
--- a/App/app/(portal)/admin/terms/terms-form.tsx
+++ b/App/app/(portal)/admin/terms/terms-form.tsx
@@ -2,41 +2,53 @@
 
 import { useState } from "react";
 import { useRouter } from "next/navigation";
-import type { TermsCategory } from "@prisma/client";
 import { AdminDialog } from "@/components/ui/admin-dialog";
-import { TERMS_CATEGORIES, TERMS_CATEGORY_LABEL } from "@/lib/terms";
 import { createTerm, updateTerm } from "./actions";
 
 const INPUT = "w-full rounded-lg border border-neutral-300 px-3 py-2 text-sm focus:border-primary-500 focus:outline-none focus:ring-2 focus:ring-primary-500/20";
 
 export type TermRow = {
   id: string;
-  category: TermsCategory;
+  categoryName: string;
   text: string;
+  isDefault: boolean;
   isActive: boolean;
 };
 
-function Fields({ term }: { term?: TermRow }) {
+function Fields({ term, categoryNames }: { term?: TermRow; categoryNames: string[] }) {
   return (
     <div className="space-y-3">
       <div>
         <label className="block text-xs font-medium text-neutral-700 mb-1">Category *</label>
-        <select name="category" defaultValue={term?.category ?? ""} required className={INPUT}>
-          <option value="" disabled>Select a category…</option>
-          {TERMS_CATEGORIES.map((c) => (
-            <option key={c} value={c}>{TERMS_CATEGORY_LABEL[c]}</option>
+        <input
+          name="categoryName"
+          list="tc-category-list"
+          defaultValue={term?.categoryName ?? ""}
+          required
+          autoComplete="off"
+          className={INPUT}
+          placeholder="Pick a category or type a new one…"
+        />
+        <datalist id="tc-category-list">
+          {categoryNames.map((c) => (
+            <option key={c} value={c} />
           ))}
-        </select>
+        </datalist>
+        <p className="mt-1 text-xs text-neutral-400">Type a new name to create a category.</p>
       </div>
       <div>
         <label className="block text-xs font-medium text-neutral-700 mb-1">Clause text *</label>
         <textarea name="text" defaultValue={term?.text ?? ""} rows={3} required className={INPUT} placeholder="e.g. Within 4 to 5 days" />
       </div>
+      <label className="flex items-center gap-2 text-sm text-neutral-700">
+        <input type="checkbox" name="isDefault" defaultChecked={term?.isDefault ?? false} className="h-4 w-4 rounded border-neutral-300 text-primary-600 focus:ring-primary-500/30" />
+        Pre-add to new POs by default
+      </label>
     </div>
   );
 }
 
-export function AddTermButton() {
+export function AddTermButton({ categoryNames }: { categoryNames: string[] }) {
   const router = useRouter();
   const [open, setOpen] = useState(false);
   const [pending, setPending] = useState(false);
@@ -56,7 +68,7 @@ export function AddTermButton() {
       </button>
       <AdminDialog open={open} onClose={() => setOpen(false)} title="Add T&C Clause">
         <form onSubmit={handleSubmit} className="space-y-4">
-          <Fields />
+          <Fields categoryNames={categoryNames} />
           {error && <p className="text-sm text-danger-700 bg-danger-50 rounded px-3 py-2">{error}</p>}
           <div className="flex gap-3 justify-end">
             <button type="button" onClick={() => setOpen(false)} className="rounded-lg border border-neutral-300 px-4 py-2 text-sm font-medium text-neutral-700">Cancel</button>
@@ -70,10 +82,12 @@ export function AddTermButton() {
 
 export function EditTermButton({
   term,
+  categoryNames,
   open: controlledOpen,
   onOpenChange,
 }: {
   term: TermRow;
+  categoryNames: string[];
   open?: boolean;
   onOpenChange?: (v: boolean) => void;
 }) {
@@ -96,7 +110,7 @@ export function EditTermButton({
   return (
     <AdminDialog open={open} onClose={() => setOpen(false)} title="Edit T&C Clause">
       <form onSubmit={handleSubmit} className="space-y-4">
-        <Fields term={term} />
+        <Fields term={term} categoryNames={categoryNames} />
         {error && <p className="text-sm text-danger-700 bg-danger-50 rounded px-3 py-2">{error}</p>}
         <div className="flex justify-end gap-3">
           <button type="button" onClick={() => setOpen(false)} className="rounded-lg border border-neutral-300 px-4 py-2 text-sm font-medium text-neutral-700">Cancel</button>
diff --git a/App/app/(portal)/admin/terms/terms-table.tsx b/App/app/(portal)/admin/terms/terms-table.tsx
index 5d45517..8a89edd 100644
--- a/App/app/(portal)/admin/terms/terms-table.tsx
+++ b/App/app/(portal)/admin/terms/terms-table.tsx
@@ -6,13 +6,12 @@ import { TableControls, SortableTh } from "@/components/ui/table-controls";
 import { RowActionsMenu, RowActionsItem, RowActionsDestructiveItem, RowActionsSeparator } from "@/components/ui/row-actions-menu";
 import { DeleteConfirmDialog } from "@/components/ui/delete-confirm-dialog";
 import { ConfirmDialog } from "@/components/ui/confirm-dialog";
-import { TERMS_CATEGORY_LABEL } from "@/lib/terms";
 import { AddTermButton, EditTermButton, type TermRow } from "./terms-form";
 import { deleteTerm, toggleTermActive } from "./actions";
 
 const CHIPS = ["Active", "Inactive"];
 
-function TermActionsMenu({ term }: { term: TermRow }) {
+function TermActionsMenu({ term, categoryNames }: { term: TermRow; categoryNames: string[] }) {
   const [editOpen, setEditOpen] = useState(false);
   const [deleteOpen, setDeleteOpen] = useState(false);
   const [toggleOpen, setToggleOpen] = useState(false);
@@ -28,7 +27,7 @@ function TermActionsMenu({ term }: { term: TermRow }) {
         <RowActionsDestructiveItem onClick={() => setDeleteOpen(true)}>Delete</RowActionsDestructiveItem>
       </RowActionsMenu>
 
-      <EditTermButton term={term} open={editOpen} onOpenChange={setEditOpen} />
+      <EditTermButton term={term} categoryNames={categoryNames} open={editOpen} onOpenChange={setEditOpen} />
       <DeleteConfirmDialog
         open={deleteOpen}
         onOpenChange={setDeleteOpen}
@@ -41,8 +40,8 @@ function TermActionsMenu({ term }: { term: TermRow }) {
         title={term.isActive ? "Deactivate clause?" : "Activate clause?"}
         description={
           term.isActive
-            ? "It will no longer appear in the PO Terms & Conditions dropdowns."
-            : "It will appear in the PO Terms & Conditions dropdowns again."
+            ? "It will no longer be suggested in the PO Terms & Conditions editor."
+            : "It will be suggested in the PO Terms & Conditions editor again."
         }
         confirmLabel={term.isActive ? "Deactivate" : "Activate"}
         onConfirm={() => toggleTermActive(term.id)}
@@ -51,12 +50,12 @@ function TermActionsMenu({ term }: { term: TermRow }) {
   );
 }
 
-export function TermsTable({ terms }: { terms: TermRow[] }) {
+export function TermsTable({ terms, categoryNames }: { terms: TermRow[]; categoryNames: string[] }) {
   const { search, setSearch, sortKey, sortDir, toggleSort, activeFilters, toggleFilter, filtered } =
     useTableControls<TermRow>({
       rows: terms,
-      defaultSortKey: "category",
-      searchText: (t) => [TERMS_CATEGORY_LABEL[t.category], t.text, t.isActive ? "active" : "inactive"].join(" "),
+      defaultSortKey: "categoryName",
+      searchText: (t) => [t.categoryName, t.text, t.isActive ? "active" : "inactive"].join(" "),
       chipMatch: (t, chip) => {
         if (chip.toLowerCase() === "active") return t.isActive;
         if (chip.toLowerCase() === "inactive") return !t.isActive;
@@ -64,7 +63,7 @@ export function TermsTable({ terms }: { terms: TermRow[] }) {
       },
       sortValue: (t, key) => {
         if (key === "isActive") return t.isActive ? "Active" : "Inactive";
-        if (key === "category") return TERMS_CATEGORY_LABEL[t.category];
+        if (key === "isDefault") return t.isDefault ? "Yes" : "No";
         const val = t[key as keyof TermRow];
         return typeof val === "string" || typeof val === "boolean" ? val : String(val ?? "");
       },
@@ -75,9 +74,9 @@ export function TermsTable({ terms }: { terms: TermRow[] }) {
       <div className="mb-6 flex items-center justify-between">
         <div>
           <h1 className="text-2xl font-semibold text-neutral-900">Terms &amp; Conditions</h1>
-          <p className="text-sm text-neutral-500 mt-0.5">Clauses that populate the PO Terms &amp; Conditions dropdowns</p>
+          <p className="text-sm text-neutral-500 mt-0.5">Categories &amp; clauses that populate the PO Terms &amp; Conditions editor</p>
         </div>
-        <AddTermButton />
+        <AddTermButton categoryNames={categoryNames} />
       </div>
 
       <TableControls
@@ -93,8 +92,9 @@ export function TermsTable({ terms }: { terms: TermRow[] }) {
         <table className="w-full text-sm">
           <thead className="bg-neutral-50 border-b border-neutral-200">
             <tr>
-              <SortableTh sortKey="category" activeSortKey={sortKey as string | null} sortDir={sortDir} onSort={(k) => toggleSort(k as keyof TermRow)}>Category</SortableTh>
+              <SortableTh sortKey="categoryName" activeSortKey={sortKey as string | null} sortDir={sortDir} onSort={(k) => toggleSort(k as keyof TermRow)}>Category</SortableTh>
               <SortableTh sortKey="text" activeSortKey={sortKey as string | null} sortDir={sortDir} onSort={(k) => toggleSort(k as keyof TermRow)}>Clause</SortableTh>
+              <SortableTh sortKey="isDefault" activeSortKey={sortKey as string | null} sortDir={sortDir} onSort={(k) => toggleSort(k as keyof TermRow)}>Default</SortableTh>
               <SortableTh sortKey="isActive" activeSortKey={sortKey as string | null} sortDir={sortDir} onSort={(k) => toggleSort(k as keyof TermRow)}>Status</SortableTh>
               <th className="px-4 py-3 w-10"></th>
             </tr>
@@ -102,15 +102,18 @@ export function TermsTable({ terms }: { terms: TermRow[] }) {
           <tbody className="divide-y divide-neutral-100">
             {filtered.length === 0 && (
               <tr>
-                <td colSpan={4} className="px-4 py-8 text-center text-neutral-400">
-                  No clauses yet. Add one to populate the PO Terms &amp; Conditions dropdowns.
+                <td colSpan={5} className="px-4 py-8 text-center text-neutral-400">
+                  No clauses yet. Add one to populate the PO Terms &amp; Conditions editor.
                 </td>
               </tr>
             )}
             {filtered.map((term) => (
               <tr key={term.id} className="hover:bg-neutral-50">
-                <td className="px-4 py-3 font-medium text-neutral-900 whitespace-nowrap">{TERMS_CATEGORY_LABEL[term.category]}</td>
+                <td className="px-4 py-3 font-medium text-neutral-900 whitespace-nowrap">{term.categoryName}</td>
                 <td className="px-4 py-3 text-neutral-600 max-w-xl whitespace-pre-wrap">{term.text}</td>
+                <td className="px-4 py-3">
+                  {term.isDefault ? <span className="text-xs font-medium text-primary-700">Default</span> : <span className="text-neutral-300">—</span>}
+                </td>
                 <td className="px-4 py-3">
                   <span className={`rounded-full px-2.5 py-0.5 text-xs font-medium ${
                     term.isActive ? "bg-success-100 text-success-700" : "bg-neutral-100 text-neutral-500"
@@ -119,7 +122,7 @@ export function TermsTable({ terms }: { terms: TermRow[] }) {
                   </span>
                 </td>
                 <td className="px-4 py-3">
-                  <TermActionsMenu term={term} />
+                  <TermActionsMenu term={term} categoryNames={categoryNames} />
                 </td>
               </tr>
             ))}
diff --git a/App/app/(portal)/approvals/[id]/manager-edit-po-form.tsx b/App/app/(portal)/approvals/[id]/manager-edit-po-form.tsx
index 7fce79e..d1a76f6 100644
--- a/App/app/(portal)/approvals/[id]/manager-edit-po-form.tsx
+++ b/App/app/(portal)/approvals/[id]/manager-edit-po-form.tsx
@@ -4,14 +4,13 @@ import { useState } from "react";
 import { useRouter } from "next/navigation";
 import { managerEditPo } from "./manager-po-edit-actions";
 import { LineItemsEditor } from "@/components/po/po-line-items-editor";
-import { TC_DEFAULTS, TC_FIXED_LINE } from "@/lib/validations/po";
 import type { LineItemInput } from "@/lib/validations/po";
 import type { Vendor, PurchaseOrder } from "@prisma/client";
 import type { VesselOption, AccountGroup, CompanyOption } from "@/app/(portal)/po/new/new-po-form";
 import { SearchableSelect } from "@/components/ui/searchable-select";
 import { DeliveryLocationField } from "@/components/po/delivery-location-field";
-import { TermsField } from "@/components/po/terms-field";
-import { TC_FIELD_CATEGORY, type TermsByCategory } from "@/lib/terms";
+import { PoTermsEditor } from "@/components/po/po-terms-editor";
+import type { CatalogueCategory, PoTerm } from "@/lib/terms";
 
 type SerializedLineItem = {
   id: string;
@@ -43,7 +42,8 @@ interface Props {
   vendors: Vendor[];
   companies: CompanyOption[];
   deliveryOptions: string[];
-  termsByCategory: TermsByCategory;
+  termsCatalogue: CatalogueCategory[];
+  initialTerms: PoTerm[];
 }
 
 const INPUT =
@@ -56,12 +56,13 @@ function ManagerAccountSelect({ accountId, accounts }: { accountId: string; acco
   return <SearchableSelect name="accountId" value={value} onChange={setValue} groups={accounts} placeholder="Search accounting code…" required />;
 }
 
-export function ManagerEditPoForm({ po, vessels, accounts, vendors, companies, deliveryOptions, termsByCategory }: Props) {
+export function ManagerEditPoForm({ po, vessels, accounts, vendors, companies, deliveryOptions, termsCatalogue, initialTerms }: Props) {
   const router = useRouter();
   const [editing, setEditing] = useState(false);
   const [pending, setPending] = useState(false);
   const [error, setError] = useState("");
   const [saved, setSaved] = useState(false);
+  const [terms, setTerms] = useState<PoTerm[]>(initialTerms);
 
   const extPo = po as typeof po & {
     piQuotationNo?: string | null; piQuotationDate?: Date | null;
@@ -103,6 +104,7 @@ export function ManagerEditPoForm({ po, vessels, accounts, vendors, companies, d
       data.set(`lineItems[${i}].unitPrice`, String(item.unitPrice));
       data.set(`lineItems[${i}].gstRate`, String(item.gstRate ?? 0.18));
     });
+    data.set("termsJson", JSON.stringify(terms));
 
     const result = await managerEditPo(po.id, data);
     if ("error" in result) {
@@ -263,39 +265,7 @@ export function ManagerEditPoForm({ po, vessels, accounts, vendors, companies, d
         {/* Terms & Conditions */}
         <section>
           <h3 className="text-xs font-bold text-amber-800 uppercase tracking-wider mb-3">Terms &amp; Conditions</h3>
-          <div className="space-y-2.5">
-            <div className="rounded-lg bg-amber-100 border border-amber-200 px-3 py-2 text-xs text-amber-700 select-none">
-              <span className="font-semibold">1.</span> {TC_FIXED_LINE}
-            </div>
-            {([
-              { n: 2, label: "Delivery",             name: "tcDelivery",         key: "tcDelivery" },
-              { n: 3, label: "Dispatch Instructions", name: "tcDispatch",         key: "tcDispatch" },
-              { n: 4, label: "Inspection",            name: "tcInspection",       key: "tcInspection" },
-              { n: 5, label: "Transit Insurance",     name: "tcTransitInsurance", key: "tcTransitInsurance" },
-              { n: 6, label: "Payment Terms",         name: "tcPaymentTerms",     key: "tcPaymentTerms" },
-            ] as const).map(({ n, label, name, key }) => (
-              <div key={name} className="flex items-center gap-3">
-                <span className="w-5 shrink-0 text-xs font-semibold text-amber-700 text-right">{n}.</span>
-                <label className="w-44 shrink-0 text-xs font-semibold text-amber-800">{label}</label>
-                <TermsField
-                  field={name}
-                  options={termsByCategory[TC_FIELD_CATEGORY[name]] ?? []}
-                  current={(extPo[key] ?? TC_DEFAULTS[key]) as string}
-                  className={INPUT}
-                />
-              </div>
-            ))}
-            <div className="flex items-start gap-3">
-              <span className="w-5 shrink-0 text-xs font-semibold text-amber-700 text-right mt-2">7.</span>
-              <label className="w-44 shrink-0 text-xs font-semibold text-amber-800 mt-2">Others</label>
-              <textarea
-                name="tcOthers"
-                rows={2}
-                defaultValue={(extPo.tcOthers ?? TC_DEFAULTS.tcOthers) as string}
-                className={INPUT}
-              />
-            </div>
-          </div>
+          <PoTermsEditor value={terms} onChange={setTerms} catalogue={termsCatalogue} accent="amber" />
         </section>
 
         {error && (
diff --git a/App/app/(portal)/approvals/[id]/manager-po-edit-actions.ts b/App/app/(portal)/approvals/[id]/manager-po-edit-actions.ts
index cebbc12..28b6c57 100644
--- a/App/app/(portal)/approvals/[id]/manager-po-edit-actions.ts
+++ b/App/app/(portal)/approvals/[id]/manager-po-edit-actions.ts
@@ -4,6 +4,7 @@ import { auth } from "@/auth";
 import { db } from "@/lib/db";
 import { hasPermission } from "@/lib/permissions";
 import { createPoSchema } from "@/lib/validations/po";
+import { parsePoTerms } from "@/lib/terms";
 import { revalidatePath } from "next/cache";
 
 export async function managerEditPo(
@@ -68,6 +69,10 @@ export async function managerEditPo(
   }
 
   const data = parsed.data;
+  let termsRaw: unknown = [];
+  try { termsRaw = JSON.parse((formData.get("termsJson") as string) || "[]"); } catch { /* ignore */ }
+  const terms = parsePoTerms(termsRaw);
+
   const newTotal = data.lineItems.reduce(
     (sum, item) => sum + item.quantity * item.unitPrice * (1 + item.gstRate),
     0
@@ -130,6 +135,7 @@ export async function managerEditPo(
       tcTransitInsurance: data.tcTransitInsurance ?? null,
       tcPaymentTerms: data.tcPaymentTerms ?? null,
       tcOthers: data.tcOthers ?? null,
+      terms,
       totalAmount: newTotal,
       lineItems: {
         deleteMany: {},
diff --git a/App/app/(portal)/approvals/[id]/page.tsx b/App/app/(portal)/approvals/[id]/page.tsx
index b0e3ca3..f2094a4 100644
--- a/App/app/(portal)/approvals/[id]/page.tsx
+++ b/App/app/(portal)/approvals/[id]/page.tsx
@@ -7,7 +7,8 @@ import { PoDetail } from "@/components/po/po-detail";
 import { ManagerEditPoForm } from "./manager-edit-po-form";
 import { buildAccountGroups } from "@/lib/cost-centre-groups";
 import { formatDeliveryLocation } from "@/lib/delivery-location";
-import { getActiveTermsByCategory } from "@/lib/terms-data";
+import { getTermsCatalogue } from "@/lib/terms-data";
+import { parsePoTerms, legacyPoTerms } from "@/lib/terms";
 import type { CompanyOption } from "@/app/(portal)/po/new/new-po-form";
 import type { Metadata } from "next";
 
@@ -62,7 +63,9 @@ export default async function ApprovalDetailPage({ params }: Props) {
 
   const accounts = buildAccountGroups(leafAccounts);
   const deliveryOptions = deliveryLocations.map((l) => formatDeliveryLocation(l.company.name, l.address));
-  const termsByCategory = await getActiveTermsByCategory();
+  const termsCatalogue = await getTermsCatalogue();
+  const savedTerms = parsePoTerms(po.terms);
+  const initialTerms = savedTerms.length > 0 ? savedTerms : legacyPoTerms(po);
 
   const serializedPo = {
     ...po,
@@ -104,7 +107,8 @@ export default async function ApprovalDetailPage({ params }: Props) {
           vendors={vendors}
           companies={companies}
           deliveryOptions={deliveryOptions}
-          termsByCategory={termsByCategory}
+          termsCatalogue={termsCatalogue}
+          initialTerms={initialTerms}
         />
       </div>
 
diff --git a/App/app/(portal)/po/[id]/edit/actions.ts b/App/app/(portal)/po/[id]/edit/actions.ts
index f37cb10..df308bc 100644
--- a/App/app/(portal)/po/[id]/edit/actions.ts
+++ b/App/app/(portal)/po/[id]/edit/actions.ts
@@ -3,6 +3,7 @@
 import { auth } from "@/auth";
 import { db } from "@/lib/db";
 import { createPoSchema } from "@/lib/validations/po";
+import { parsePoTerms } from "@/lib/terms";
 import { notify } from "@/lib/notifier";
 import { revalidatePath } from "next/cache";
 
@@ -71,6 +72,11 @@ export async function updatePo(
   }
 
   const data = parsed.data;
+  // Dynamic T&C rows (issue #11) — JSON snapshot superseding the tc* columns.
+  let termsRaw: unknown = [];
+  try { termsRaw = JSON.parse((formData.get("termsJson") as string) || "[]"); } catch { /* ignore */ }
+  const terms = parsePoTerms(termsRaw);
+
   const total = data.lineItems.reduce(
     (sum, item) => sum + item.quantity * item.unitPrice * (1 + item.gstRate),
     0
@@ -156,6 +162,7 @@ export async function updatePo(
       tcTransitInsurance: data.tcTransitInsurance ?? null,
       tcPaymentTerms: data.tcPaymentTerms ?? null,
       tcOthers: data.tcOthers ?? null,
+      terms,
       totalAmount: total,
       status: shouldSubmit ? "MGR_REVIEW" : "DRAFT",
       submittedAt: shouldSubmit ? new Date() : po.submittedAt,
diff --git a/App/app/(portal)/po/[id]/edit/edit-po-form.tsx b/App/app/(portal)/po/[id]/edit/edit-po-form.tsx
index e6bc6f4..6ef1c55 100644
--- a/App/app/(portal)/po/[id]/edit/edit-po-form.tsx
+++ b/App/app/(portal)/po/[id]/edit/edit-po-form.tsx
@@ -8,10 +8,9 @@ import type { VesselOption, AccountGroup, CompanyOption } from "@/app/(portal)/p
 import { LineItemsEditor } from "@/components/po/po-line-items-editor";
 import { SearchableSelect } from "@/components/ui/searchable-select";
 import { DeliveryLocationField } from "@/components/po/delivery-location-field";
-import { TermsField } from "@/components/po/terms-field";
-import { TC_FIELD_CATEGORY, type TermsByCategory } from "@/lib/terms";
+import { PoTermsEditor } from "@/components/po/po-terms-editor";
+import type { CatalogueCategory, PoTerm } from "@/lib/terms";
 import type { LineItemInput } from "@/lib/validations/po";
-import { TC_DEFAULTS, TC_FIXED_LINE, TC_FIXED_LINE_2 } from "@/lib/validations/po";
 
 const INPUT_CLS =
   "w-full rounded-lg border border-neutral-300 px-3 py-2.5 text-sm focus:border-primary-500 focus:outline-none focus:ring-2 focus:ring-primary-500/20";
@@ -44,11 +43,12 @@ interface Props {
   vendors: Vendor[];
   companies: CompanyOption[];
   deliveryOptions: string[];
-  termsByCategory: TermsByCategory;
+  termsCatalogue: CatalogueCategory[];
+  initialTerms: PoTerm[];
   managerNoteAuthor?: string | null;
 }
 
-export function EditPoForm({ po, vessels, accounts, vendors, companies, deliveryOptions, termsByCategory, managerNoteAuthor }: Props) {
+export function EditPoForm({ po, vessels, accounts, vendors, companies, deliveryOptions, termsCatalogue, initialTerms, managerNoteAuthor }: Props) {
   const router = useRouter();
   const [lineItems, setLineItems] = useState<LineItemInput[]>(
     po.lineItems.map((li) => ({
@@ -67,6 +67,7 @@ export function EditPoForm({ po, vessels, accounts, vendors, companies, delivery
   const hasPerLineAccounts = po.lineItems.some((li) => li.accountId);
   const [multiAccount, setMultiAccount] = useState(hasPerLineAccounts);
   const [defaultAccountId, setDefaultAccountId] = useState(po.accountId ?? "");
+  const [terms, setTerms] = useState<PoTerm[]>(initialTerms);
 
   const canSubmit   = po.status === "DRAFT";
   const canResubmit = po.status === "EDITS_REQUESTED";
@@ -77,6 +78,7 @@ export function EditPoForm({ po, vessels, accounts, vendors, companies, delivery
     const form = document.getElementById("edit-po-form") as HTMLFormElement;
     const data = new FormData(form);
     data.set("intent", intent);
+    data.set("termsJson", JSON.stringify(terms));
     lineItems.forEach((item, i) => {
       data.set(`lineItems[${i}].name`, item.name);
       data.set(`lineItems[${i}].description`, item.description ?? "");
@@ -265,43 +267,9 @@ export function EditPoForm({ po, vessels, accounts, vendors, companies, delivery
 
       {/* Terms & Conditions */}
       <section className="rounded-lg border border-neutral-200 bg-white p-6">
-        <h2 className="text-base font-semibold text-neutral-900 mb-4">Terms &amp; Conditions</h2>
-        <div className="space-y-3">
-          <div className="rounded-lg bg-neutral-50 border border-neutral-200 px-3 py-2.5 text-sm text-neutral-500 select-none">
-            <span className="font-medium text-neutral-600">1.</span> {TC_FIXED_LINE}
-          </div>
-          {([
-            { n: 2, label: "Delivery",             name: "tcDelivery",         key: "tcDelivery" },
-            { n: 3, label: "Dispatch Instructions", name: "tcDispatch",         key: "tcDispatch" },
-            { n: 4, label: "Inspection",            name: "tcInspection",       key: "tcInspection" },
-            { n: 5, label: "Transit Insurance",     name: "tcTransitInsurance", key: "tcTransitInsurance" },
-            { n: 6, label: "Payment Terms",         name: "tcPaymentTerms",     key: "tcPaymentTerms" },
-          ] as const).map(({ n, label, name, key }) => (
-            <div key={name} className="flex items-center gap-3">
-              <span className="w-5 shrink-0 text-sm font-medium text-neutral-500 text-right">{n}.</span>
-              <label className="w-44 shrink-0 text-sm font-medium text-neutral-700">{label}</label>
-              <TermsField
-                field={name}
-                options={termsByCategory[TC_FIELD_CATEGORY[name]] ?? []}
-                current={extPo[key] ?? TC_DEFAULTS[key]}
-                className={INPUT_CLS}
-              />
-            </div>
-          ))}
-          <div className="flex items-start gap-3">
-            <span className="w-5 shrink-0 text-sm font-medium text-neutral-500 text-right mt-2.5">7.</span>
-            <label className="w-44 shrink-0 text-sm font-medium text-neutral-700 mt-2.5">Others</label>
-            <textarea
-              name="tcOthers"
-              rows={2}
-              defaultValue={extPo.tcOthers ?? ""}
-              className={INPUT_CLS}
-            />
-          </div>
-          <div className="rounded-lg bg-neutral-50 border border-neutral-200 px-3 py-2.5 text-sm text-neutral-500 select-none">
-            <span className="font-medium text-neutral-600">8.</span> {TC_FIXED_LINE_2}
-          </div>
-        </div>
+        <h2 className="text-base font-semibold text-neutral-900 mb-1">Terms &amp; Conditions</h2>
+        <p className="text-xs text-neutral-500 mb-4">Add a category and pick (or type) a clause.</p>
+        <PoTermsEditor value={terms} onChange={setTerms} catalogue={termsCatalogue} />
       </section>
 
       {error && (
diff --git a/App/app/(portal)/po/[id]/edit/page.tsx b/App/app/(portal)/po/[id]/edit/page.tsx
index dd0fe4b..7c44168 100644
--- a/App/app/(portal)/po/[id]/edit/page.tsx
+++ b/App/app/(portal)/po/[id]/edit/page.tsx
@@ -4,7 +4,8 @@ import { notFound, redirect } from "next/navigation";
 import { EditPoForm } from "./edit-po-form";
 import { buildAccountGroups } from "@/lib/cost-centre-groups";
 import { formatDeliveryLocation } from "@/lib/delivery-location";
-import { getActiveTermsByCategory } from "@/lib/terms-data";
+import { getTermsCatalogue } from "@/lib/terms-data";
+import { parsePoTerms, legacyPoTerms } from "@/lib/terms";
 import type { CompanyOption } from "@/app/(portal)/po/new/new-po-form";
 import type { Metadata } from "next";
 
@@ -52,7 +53,9 @@ export default async function EditPoPage({ params }: Props) {
 
   const accounts = buildAccountGroups(leafAccounts);
   const deliveryOptions = deliveryLocations.map((l) => formatDeliveryLocation(l.company.name, l.address));
-  const termsByCategory = await getActiveTermsByCategory();
+  const termsCatalogue = await getTermsCatalogue();
+  const savedTerms = parsePoTerms(po.terms);
+  const initialTerms = savedTerms.length > 0 ? savedTerms : legacyPoTerms(po);
 
   const serializedPo = {
     ...po,
@@ -79,7 +82,8 @@ export default async function EditPoPage({ params }: Props) {
         vendors={vendors}
         companies={companies}
         deliveryOptions={deliveryOptions}
-        termsByCategory={termsByCategory}
+        termsCatalogue={termsCatalogue}
+        initialTerms={initialTerms}
         managerNoteAuthor={noteAction?.actor.name ?? null}
       />
     </div>
diff --git a/App/app/(portal)/po/new/actions.ts b/App/app/(portal)/po/new/actions.ts
index a9114c0..ccb5170 100644
--- a/App/app/(portal)/po/new/actions.ts
+++ b/App/app/(portal)/po/new/actions.ts
@@ -4,6 +4,7 @@ import { auth } from "@/auth";
 import { db } from "@/lib/db";
 import { requirePermission } from "@/lib/permissions";
 import { createPoSchema } from "@/lib/validations/po";
+import { parsePoTerms } from "@/lib/terms";
 import { generatePoNumber } from "@/lib/po-number";
 import { notify } from "@/lib/notifier";
 import { revalidatePath } from "next/cache";
@@ -77,6 +78,11 @@ export async function createPo(
   }
 
   const data = parsed.data;
+  // Dynamic T&C rows (issue #11) — a JSON snapshot superseding the tc* columns.
+  let termsRaw: unknown = [];
+  try { termsRaw = JSON.parse((formData.get("termsJson") as string) || "[]"); } catch { /* ignore */ }
+  const terms = parsePoTerms(termsRaw);
+
   // totalAmount = grand total including GST
   const total = data.lineItems.reduce(
     (sum, item) => sum + item.quantity * item.unitPrice * (1 + item.gstRate),
@@ -108,6 +114,7 @@ export async function createPo(
       tcTransitInsurance: data.tcTransitInsurance ?? null,
       tcPaymentTerms: data.tcPaymentTerms ?? null,
       tcOthers: data.tcOthers ?? null,
+      terms,
       submitterId: session.user.id,
       submittedAt: intent === "submit" ? new Date() : null,
       lineItems: {
diff --git a/App/app/(portal)/po/new/new-po-form.tsx b/App/app/(portal)/po/new/new-po-form.tsx
index 664ad4e..e44c0a3 100644
--- a/App/app/(portal)/po/new/new-po-form.tsx
+++ b/App/app/(portal)/po/new/new-po-form.tsx
@@ -8,11 +8,10 @@ import { LineItemsEditor } from "@/components/po/po-line-items-editor";
 import { FileUploader } from "@/components/po/file-uploader";
 import { SearchableSelect } from "@/components/ui/searchable-select";
 import { DeliveryLocationField } from "@/components/po/delivery-location-field";
-import { TermsField } from "@/components/po/terms-field";
-import { TC_FIELD_CATEGORY, type TermsByCategory } from "@/lib/terms";
+import { PoTermsEditor } from "@/components/po/po-terms-editor";
+import type { CatalogueCategory, PoTerm } from "@/lib/terms";
 import { uploadAndLinkFiles } from "@/lib/upload-files";
 import type { LineItemInput } from "@/lib/validations/po";
-import { TC_DEFAULTS, TC_FIXED_LINE, TC_FIXED_LINE_2 } from "@/lib/validations/po";
 
 export type VesselOption = { id: string; code: string; name: string };
 export type AccountGroup = { group: string; items: { id: string; code: string; name: string }[] };
@@ -29,14 +28,15 @@ interface Props {
   vendors: Vendor[];
   companies: CompanyOption[];
   deliveryOptions: string[];
-  termsByCategory: TermsByCategory;
+  termsCatalogue: CatalogueCategory[];
+  defaultTerms: PoTerm[];
   initialLineItems?: LineItemInput[];
   initialVendorId?: string;
   initialVesselId?: string;
   initialCompanyId?: string;
 }
 
-export function NewPoForm({ vessels, accounts, vendors, companies, deliveryOptions, termsByCategory, initialLineItems, initialVendorId, initialVesselId, initialCompanyId }: Props) {
+export function NewPoForm({ vessels, accounts, vendors, companies, deliveryOptions, termsCatalogue, defaultTerms, initialLineItems, initialVendorId, initialVesselId, initialCompanyId }: Props) {
   const router = useRouter();
   const [lineItems, setLineItems] = useState<LineItemInput[]>(
     initialLineItems && initialLineItems.length > 0 ? initialLineItems : [EMPTY_LINE]
@@ -47,6 +47,7 @@ export function NewPoForm({ vessels, accounts, vendors, companies, deliveryOptio
   const [error, setError] = useState("");
   const [multiAccount, setMultiAccount] = useState(false);
   const [defaultAccountId, setDefaultAccountId] = useState("");
+  const [terms, setTerms] = useState<PoTerm[]>(defaultTerms);
 
   async function handleSubmit(intent: "draft" | "submit") {
     setSubmitting(intent);
@@ -54,6 +55,7 @@ export function NewPoForm({ vessels, accounts, vendors, companies, deliveryOptio
     const form = document.getElementById("po-form") as HTMLFormElement;
     const data = new FormData(form);
     data.set("intent", intent);
+    data.set("termsJson", JSON.stringify(terms));
     lineItems.forEach((item, i) => {
       data.set(`lineItems[${i}].name`, item.name);
       data.set(`lineItems[${i}].description`, item.description ?? "");
@@ -245,33 +247,9 @@ export function NewPoForm({ vessels, accounts, vendors, companies, deliveryOptio
 
       {/* Terms & Conditions */}
       <section className="rounded-lg border border-neutral-200 bg-white p-6">
-        <h2 className="text-base font-semibold text-neutral-900 mb-4">Terms &amp; Conditions</h2>
-        <div className="space-y-3">
-          <div className="rounded-lg bg-neutral-50 border border-neutral-200 px-3 py-2.5 text-sm text-neutral-500 select-none">
-            <span className="font-medium text-neutral-600">1.</span> {TC_FIXED_LINE}
-          </div>
-          {([
-            { n: 2, label: "Delivery",             name: "tcDelivery",         key: "tcDelivery" },
-            { n: 3, label: "Dispatch Instructions", name: "tcDispatch",         key: "tcDispatch" },
-            { n: 4, label: "Inspection",            name: "tcInspection",       key: "tcInspection" },
-            { n: 5, label: "Transit Insurance",     name: "tcTransitInsurance", key: "tcTransitInsurance" },
-            { n: 6, label: "Payment Terms",         name: "tcPaymentTerms",     key: "tcPaymentTerms" },
-          ] as const).map(({ n, label, name, key }) => (
-            <div key={name} className="flex items-center gap-3">
-              <span className="w-5 shrink-0 text-sm font-medium text-neutral-500 text-right">{n}.</span>
-              <label className="w-44 shrink-0 text-sm font-medium text-neutral-700">{label}</label>
-              <TermsField field={name} options={termsByCategory[TC_FIELD_CATEGORY[name]] ?? []} current={TC_DEFAULTS[key]} className={INPUT_CLS} />
-            </div>
-          ))}
-          <div className="flex items-start gap-3">
-            <span className="w-5 shrink-0 text-sm font-medium text-neutral-500 text-right mt-2.5">7.</span>
-            <label className="w-44 shrink-0 text-sm font-medium text-neutral-700 mt-2.5">Others</label>
-            <textarea name="tcOthers" rows={2} defaultValue="" className={INPUT_CLS} />
-          </div>
-          <div className="rounded-lg bg-neutral-50 border border-neutral-200 px-3 py-2.5 text-sm text-neutral-500 select-none">
-            <span className="font-medium text-neutral-600">8.</span> {TC_FIXED_LINE_2}
-          </div>
-        </div>
+        <h2 className="text-base font-semibold text-neutral-900 mb-1">Terms &amp; Conditions</h2>
+        <p className="text-xs text-neutral-500 mb-4">Add a category and pick (or type) a clause. Manage the catalogue under Administration → Terms &amp; Conditions.</p>
+        <PoTermsEditor value={terms} onChange={setTerms} catalogue={termsCatalogue} />
       </section>
 
       {/* Attachments */}
diff --git a/App/app/(portal)/po/new/page.tsx b/App/app/(portal)/po/new/page.tsx
index dfffc7e..e81fe95 100644
--- a/App/app/(portal)/po/new/page.tsx
+++ b/App/app/(portal)/po/new/page.tsx
@@ -5,7 +5,7 @@ import { redirect } from "next/navigation";
 import { NewPoForm } from "./new-po-form";
 import { buildAccountGroups } from "@/lib/cost-centre-groups";
 import { formatDeliveryLocation } from "@/lib/delivery-location";
-import { getActiveTermsByCategory } from "@/lib/terms-data";
+import { getTermsCatalogue, getDefaultPoTerms } from "@/lib/terms-data";
 import type { Metadata } from "next";
 import type { LineItemInput } from "@/lib/validations/po";
 import type { CartItem } from "@/lib/cart";
@@ -62,7 +62,7 @@ export default async function NewPoPage({ searchParams }: Props) {
 
   const accounts = buildAccountGroups(leafAccounts);
   const deliveryOptions = deliveryLocations.map((l) => formatDeliveryLocation(l.company.name, l.address));
-  const termsByCategory = await getActiveTermsByCategory();
+  const [termsCatalogue, defaultTerms] = await Promise.all([getTermsCatalogue(), getDefaultPoTerms()]);
 
   return (
     <div className="max-w-6xl">
@@ -78,7 +78,8 @@ export default async function NewPoPage({ searchParams }: Props) {
         vendors={vendors}
         companies={companies}
         deliveryOptions={deliveryOptions}
-        termsByCategory={termsByCategory}
+        termsCatalogue={termsCatalogue}
+        defaultTerms={defaultTerms}
         initialLineItems={initialLineItems}
         initialVendorId={initialVendorId}
         initialVesselId={initialVesselId}
diff --git a/App/app/api/po/[id]/export/route.ts b/App/app/api/po/[id]/export/route.ts
index 403883a..f1a0ca3 100644
--- a/App/app/api/po/[id]/export/route.ts
+++ b/App/app/api/po/[id]/export/route.ts
@@ -3,6 +3,7 @@ import { db } from "@/lib/db";
 import { NextRequest, NextResponse } from "next/server";
 import ExcelJS from "exceljs";
 import { TC_FIXED_LINE, TC_DEFAULTS } from "@/lib/validations/po";
+import { parsePoTerms } from "@/lib/terms";
 import { downloadBuffer } from "@/lib/storage";
 import { CANCELLED_WATERMARK_PNG_BASE64, CANCELLED_WATERMARK_W, CANCELLED_WATERMARK_H } from "@/lib/cancelled-watermark";
 import { getImageSize, scaleToBox } from "@/lib/image-size";
@@ -182,15 +183,21 @@ export async function GET(request: NextRequest, { params }: Props) {
   const reqDate  = fmtDate(ext.requisitionDate);
   const delivery = ext.placeOfDelivery ?? "";
 
-  const tcLines: [number, string, string][] = [
-    [1, "",                       TC_FIXED_LINE],
-    [2, "DELIVERY",               ext.tcDelivery         ?? TC_DEFAULTS.tcDelivery],
-    [3, "DISPATCH INSTRUCTIONS",  ext.tcDispatch         ?? TC_DEFAULTS.tcDispatch],
-    [4, "INSPECTION",             ext.tcInspection       ?? TC_DEFAULTS.tcInspection],
-    [5, "TRANSIT INSURANCE",      ext.tcTransitInsurance ?? TC_DEFAULTS.tcTransitInsurance],
-    [6, "PAYMENT TERMS",          ext.tcPaymentTerms     ?? TC_DEFAULTS.tcPaymentTerms],
-    ...(ext.tcOthers ? [[7, "OTHERS", ext.tcOthers] as [number, string, string]] : []),
-  ];
+  // T&C (issue #11): prefer the dynamic snapshot (po.terms) when present; older
+  // POs fall back to the legacy tc* columns + the fixed boilerplate lines.
+  const dynamicTerms = parsePoTerms((po as { terms?: unknown }).terms);
+  const tcLines: [number, string, string][] =
+    dynamicTerms.length > 0
+      ? dynamicTerms.map((t, i) => [i + 1, (t.category || "").toUpperCase(), t.text] as [number, string, string])
+      : [
+          [1, "",                       TC_FIXED_LINE],
+          [2, "DELIVERY",               ext.tcDelivery         ?? TC_DEFAULTS.tcDelivery],
+          [3, "DISPATCH INSTRUCTIONS",  ext.tcDispatch         ?? TC_DEFAULTS.tcDispatch],
+          [4, "INSPECTION",             ext.tcInspection       ?? TC_DEFAULTS.tcInspection],
+          [5, "TRANSIT INSURANCE",      ext.tcTransitInsurance ?? TC_DEFAULTS.tcTransitInsurance],
+          [6, "PAYMENT TERMS",          ext.tcPaymentTerms     ?? TC_DEFAULTS.tcPaymentTerms],
+          ...(ext.tcOthers ? [[7, "OTHERS", ext.tcOthers] as [number, string, string]] : []),
+        ];
 
   const vendorAddr = [
     po.vendor?.address,
diff --git a/App/components/po/po-detail.tsx b/App/components/po/po-detail.tsx
index 25a12f4..0982e34 100644
--- a/App/components/po/po-detail.tsx
+++ b/App/components/po/po-detail.tsx
@@ -9,6 +9,7 @@ import { formatCurrency, formatDate, formatDateTime } from "@/lib/utils";
 import { generateDownloadUrl } from "@/lib/storage";
 import { groupAttachments } from "@/lib/attachments";
 import { TC_FIXED_LINE } from "@/lib/validations/po";
+import { parsePoTerms } from "@/lib/terms";
 import type { LineItemInput } from "@/lib/validations/po";
 import type { Role } from "@prisma/client";
 
@@ -38,6 +39,7 @@ type PoWithRelations = {
   tcTransitInsurance?: string | null;
   tcPaymentTerms?: string | null;
   tcOthers?: string | null;
+  terms?: import("@prisma/client").Prisma.JsonValue;
   createdAt: Date;
   submittedAt: Date | null;
   approvedAt: Date | null;
@@ -459,31 +461,41 @@ export async function PoDetail({ po, currentUserId, currentRole, readOnly = fals
         />
       </div>
 
-      {/* Terms & Conditions */}
-      {(po.tcDelivery || po.tcDispatch || po.tcInspection || po.tcTransitInsurance || po.tcPaymentTerms || po.tcOthers) && (
-        <div className="rounded-lg border border-neutral-200 bg-white p-6">
-          <h3 className="text-sm font-semibold text-neutral-900 mb-3">Terms &amp; Conditions</h3>
-          <ol className="space-y-1.5 text-sm text-neutral-700" style={{ listStyle: "none", padding: 0 }}>
-            <li className="flex gap-2">
-              <span className="shrink-0 font-medium text-neutral-500">1.</span>
-              <span>{TC_FIXED_LINE}</span>
-            </li>
-            {([
-              { n: 2, label: "DELIVERY",              value: po.tcDelivery },
-              { n: 3, label: "DISPATCH INSTRUCTIONS", value: po.tcDispatch },
-              { n: 4, label: "INSPECTION",            value: po.tcInspection },
-              { n: 5, label: "TRANSIT INSURANCE",     value: po.tcTransitInsurance },
-              { n: 6, label: "PAYMENT TERMS",         value: po.tcPaymentTerms },
-              { n: 7, label: "OTHERS",                value: po.tcOthers },
-            ] as const).filter(({ value }) => value).map(({ n, label, value }) => (
-              <li key={n} className="flex gap-2">
-                <span className="shrink-0 font-medium text-neutral-500">{n}.</span>
-                <span><span className="font-medium">{label}:</span> {value}</span>
-              </li>
-            ))}
-          </ol>
-        </div>
-      )}
+      {/* Terms & Conditions (issue #11): dynamic snapshot when present, else legacy tc* + fixed line. */}
+      {(() => {
+        const saved = parsePoTerms(po.terms);
+        const rows: { label: string; text: string }[] =
+          saved.length > 0
+            ? saved.map((t) => ({ label: (t.category || "").toUpperCase(), text: t.text }))
+            : [
+                { label: "", text: TC_FIXED_LINE },
+                ...([
+                  ["DELIVERY", po.tcDelivery],
+                  ["DISPATCH INSTRUCTIONS", po.tcDispatch],
+                  ["INSPECTION", po.tcInspection],
+                  ["TRANSIT INSURANCE", po.tcTransitInsurance],
+                  ["PAYMENT TERMS", po.tcPaymentTerms],
+                  ["OTHERS", po.tcOthers],
+                ] as const)
+                  .filter(([, value]) => value)
+                  .map(([label, value]) => ({ label, text: value as string })),
+              ];
+        // Only the fixed line and nothing else → treat as "no T&C" (legacy empty PO).
+        if (saved.length === 0 && rows.length <= 1) return null;
+        return (
+          <div className="rounded-lg border border-neutral-200 bg-white p-6">
+            <h3 className="text-sm font-semibold text-neutral-900 mb-3">Terms &amp; Conditions</h3>
+            <ol className="space-y-1.5 text-sm text-neutral-700" style={{ listStyle: "none", padding: 0 }}>
+              {rows.map((r, i) => (
+                <li key={i} className="flex gap-2">
+                  <span className="shrink-0 font-medium text-neutral-500">{i + 1}.</span>
+                  <span>{r.label ? <span className="font-medium">{r.label}: </span> : null}{r.text}</span>
+                </li>
+              ))}
+            </ol>
+          </div>
+        );
+      })()}
 
       {/* Documents — grouped by lifecycle stage (submission / payment / delivery) */}
       {attachmentGroups.length > 0 && (
diff --git a/App/components/po/po-terms-editor.tsx b/App/components/po/po-terms-editor.tsx
new file mode 100644
index 0000000..796446d
--- /dev/null
+++ b/App/components/po/po-terms-editor.tsx
@@ -0,0 +1,100 @@
+"use client";
+
+import type { CatalogueCategory, PoTerm } from "@/lib/terms";
+
+/**
+ * Dynamic PO Terms & Conditions editor (issue #11). A list of rows, each a
+ * category + a clause; "+ Add term" appends a row. Both fields are comboboxes
+ * (native <input list>) so you can pick a catalogued category/clause or type a
+ * new one-off value. Controlled by the parent form, which serialises `value`
+ * into the submitted FormData (`termsJson`).
+ */
+export function PoTermsEditor({
+  value,
+  onChange,
+  catalogue,
+  accent = "neutral",
+}: {
+  value: PoTerm[];
+  onChange: (v: PoTerm[]) => void;
+  catalogue: CatalogueCategory[];
+  // The manager-edit form uses an amber theme; everything else neutral.
+  accent?: "neutral" | "amber";
+}) {
+  const input =
+    accent === "amber"
+      ? "w-full rounded-lg border border-amber-300 bg-amber-50 px-3 py-2 text-sm focus:border-amber-500 focus:outline-none focus:ring-2 focus:ring-amber-400/30"
+      : "w-full rounded-lg border border-neutral-300 px-3 py-2.5 text-sm focus:border-primary-500 focus:outline-none focus:ring-2 focus:ring-primary-500/20";
+
+  function update(i: number, patch: Partial<PoTerm>) {
+    onChange(value.map((row, idx) => (idx === i ? { ...row, ...patch } : row)));
+  }
+  function remove(i: number) {
+    onChange(value.filter((_, idx) => idx !== i));
+  }
+  function add() {
+    onChange([...value, { category: "", text: "" }]);
+  }
+
+  const clausesFor = (categoryName: string) =>
+    catalogue.find((c) => c.name.toLowerCase() === categoryName.trim().toLowerCase())?.clauses ?? [];
+
+  return (
+    <div className="space-y-2">
+      {/* Shared category suggestions */}
+      <datalist id="po-terms-categories">
+        {catalogue.map((c) => (
+          <option key={c.id} value={c.name} />
+        ))}
+      </datalist>
+
+      {value.length === 0 && (
+        <p className="text-sm text-neutral-400">No terms added. Use “+ Add term” below.</p>
+      )}
+
+      {value.map((row, i) => (
+        <div key={i} className="flex flex-col gap-2 sm:flex-row sm:items-start">
+          <input
+            aria-label="Category"
+            list="po-terms-categories"
+            value={row.category}
+            onChange={(e) => update(i, { category: e.target.value })}
+            placeholder="Category"
+            autoComplete="off"
+            className={`${input} sm:w-56`}
+          />
+          <input
+            aria-label="Clause"
+            list={`po-terms-clauses-${i}`}
+            value={row.text}
+            onChange={(e) => update(i, { text: e.target.value })}
+            placeholder="Type a clause or pick one…"
+            autoComplete="off"
+            className={input}
+          />
+          <datalist id={`po-terms-clauses-${i}`}>
+            {clausesFor(row.category).map((c) => (
+              <option key={c} value={c} />
+            ))}
+          </datalist>
+          <button
+            type="button"
+            onClick={() => remove(i)}
+            aria-label="Remove term"
+            className="shrink-0 rounded-lg border border-neutral-300 bg-white px-3 py-2 text-sm text-neutral-500 hover:bg-neutral-50"
+          >
+            ✕
+          </button>
+        </div>
+      ))}
+
+      <button
+        type="button"
+        onClick={add}
+        className="mt-1 rounded-lg border border-dashed border-neutral-300 px-3 py-2 text-sm font-medium text-neutral-600 hover:bg-neutral-50"
+      >
+        + Add term
+      </button>
+    </div>
+  );
+}
diff --git a/App/components/po/terms-field.tsx b/App/components/po/terms-field.tsx
deleted file mode 100644
index 42fe92c..0000000
--- a/App/components/po/terms-field.tsx
+++ /dev/null
@@ -1,42 +0,0 @@
-"use client";
-
-/**
- * A single PO Terms & Conditions slot (issue #11) — a combobox: type a one-off
- * clause OR pick a catalogued one. Implemented as a native <input list> +
- * <datalist> so it stays free-text (custom wording per PO) while suggesting the
- * admin-managed clauses for this category, and submits via plain FormData.
- *
- * `options` are the active clause texts (suggestions). `current` is the PO's
- * existing/default value for this slot; it's just the input's initial value, so
- * a value not in the catalogue is preserved as-is.
- */
-export function TermsField({
-  field,
-  options,
-  current,
-  className,
-}: {
-  field: string;
-  options: string[];
-  current?: string | null;
-  className?: string;
-}) {
-  const listId = `terms-list-${field}`;
-  return (
-    <>
-      <input
-        name={field}
-        list={listId}
-        defaultValue={current ?? ""}
-        autoComplete="off"
-        placeholder="Type a clause or pick one…"
-        className={className}
-      />
-      <datalist id={listId}>
-        {options.map((o) => (
-          <option key={o} value={o} />
-        ))}
-      </datalist>
-    </>
-  );
-}
diff --git a/App/lib/terms-data.ts b/App/lib/terms-data.ts
index 8344fb7..ae49eaf 100644
--- a/App/lib/terms-data.ts
+++ b/App/lib/terms-data.ts
@@ -1,14 +1,28 @@
 import { db } from "@/lib/db";
-import type { TermsByCategory } from "@/lib/terms";
+import type { CatalogueCategory, PoTerm } from "@/lib/terms";
 
-/** Active T&C clause texts grouped by category, for the PO form dropdowns (#11). */
-export async function getActiveTermsByCategory(): Promise<TermsByCategory> {
-  const rows = await db.termsCondition.findMany({
+/** Active categories (ordered) each with their active clause texts — for the PO T&C editor (#11). */
+export async function getTermsCatalogue(): Promise<CatalogueCategory[]> {
+  const cats = await db.termsCategory.findMany({
     where: { isActive: true },
-    orderBy: [{ category: "asc" }, { createdAt: "asc" }],
-    select: { category: true, text: true },
+    orderBy: [{ sortOrder: "asc" }, { name: "asc" }],
+    include: {
+      clauses: {
+        where: { isActive: true },
+        orderBy: [{ sortOrder: "asc" }, { createdAt: "asc" }],
+        select: { text: true },
+      },
+    },
   });
-  const map: TermsByCategory = {};
-  for (const r of rows) (map[r.category] ??= []).push(r.text);
-  return map;
+  return cats.map((c) => ({ id: c.id, name: c.name, clauses: c.clauses.map((x) => x.text) }));
+}
+
+/** The default T&C set pre-filled on a NEW PO — every active isDefault clause, ordered. */
+export async function getDefaultPoTerms(): Promise<PoTerm[]> {
+  const rows = await db.termsCondition.findMany({
+    where: { isDefault: true, isActive: true, category: { isActive: true } },
+    orderBy: [{ category: { sortOrder: "asc" } }, { sortOrder: "asc" }],
+    select: { text: true, category: { select: { name: true } } },
+  });
+  return rows.map((r) => ({ category: r.category.name, text: r.text }));
 }
diff --git a/App/lib/terms.ts b/App/lib/terms.ts
index 52e89cf..9ffc018 100644
--- a/App/lib/terms.ts
+++ b/App/lib/terms.ts
@@ -1,36 +1,50 @@
 /**
- * Terms & Conditions catalogue (issue #11) — admin-managed clauses that populate
- * the PO's named T&C dropdowns. Each clause has a category matching one of the
- * PO's tc* slots; the chosen clause is stored as a text snapshot in that column.
+ * Terms & Conditions catalogue (issue #11) — admin-managed categories + clauses
+ * that feed the PO's dynamic T&C editor. Categories are user-defined data.
  */
-import type { TermsCategory } from "@prisma/client";
+import { TC_DEFAULTS, TC_FIXED_LINE, TC_FIXED_LINE_2 } from "@/lib/validations/po";
 
-// The five catalogued slots (the PO's "Others" stays free text; the fixed
-// boilerplate lines are not catalogued). Order = display order.
-export const TERMS_CATEGORIES: TermsCategory[] = [
-  "DELIVERY",
-  "DISPATCH",
-  "INSPECTION",
-  "TRANSIT_INSURANCE",
-  "PAYMENT_TERMS",
-];
+// One chosen T&C row on a PO (stored as a JSON snapshot in PurchaseOrder.terms).
+export type PoTerm = { category: string; text: string };
 
-export const TERMS_CATEGORY_LABEL: Record<TermsCategory, string> = {
-  DELIVERY: "Delivery",
-  DISPATCH: "Dispatch Instructions",
-  INSPECTION: "Inspection",
-  TRANSIT_INSURANCE: "Transit Insurance",
-  PAYMENT_TERMS: "Payment Terms",
+// A catalogue category with its active clause texts — passed to the PO editor.
+export type CatalogueCategory = { id: string; name: string; clauses: string[] };
+
+// Legacy PO (no `terms` JSON yet) → editable rows, mapping the old tc* columns +
+// the previously-fixed boilerplate lines onto the new category model, in the
+// original document order. Used to seed the editor when editing an old PO.
+type LegacyTc = {
+  tcDelivery?: string | null;
+  tcDispatch?: string | null;
+  tcInspection?: string | null;
+  tcTransitInsurance?: string | null;
+  tcPaymentTerms?: string | null;
+  tcOthers?: string | null;
 };
+export function legacyPoTerms(po: LegacyTc): PoTerm[] {
+  const rows: PoTerm[] = [
+    { category: "General", text: TC_FIXED_LINE },
+    { category: "Delivery", text: po.tcDelivery ?? TC_DEFAULTS.tcDelivery },
+    { category: "Dispatch Instructions", text: po.tcDispatch ?? TC_DEFAULTS.tcDispatch },
+    { category: "Inspection", text: po.tcInspection ?? TC_DEFAULTS.tcInspection },
+    { category: "Transit Insurance", text: po.tcTransitInsurance ?? TC_DEFAULTS.tcTransitInsurance },
+    { category: "Payment Terms", text: po.tcPaymentTerms ?? TC_DEFAULTS.tcPaymentTerms },
+    { category: "Others", text: po.tcOthers ?? "" },
+    { category: "General", text: TC_FIXED_LINE_2 },
+  ];
+  return rows.filter((r) => r.text.trim().length > 0);
+}
 
-// PO tc* form field ⇄ catalogue category.
-export const TC_FIELD_CATEGORY: Record<string, TermsCategory> = {
-  tcDelivery: "DELIVERY",
-  tcDispatch: "DISPATCH",
-  tcInspection: "INSPECTION",
-  tcTransitInsurance: "TRANSIT_INSURANCE",
-  tcPaymentTerms: "PAYMENT_TERMS",
-};
-
-// Server → client shape: active clause texts grouped by category.
-export type TermsByCategory = Partial<Record<TermsCategory, string[]>>;
+/** Coerce an unknown (DB JSON / parsed form value) into a clean PoTerm[]. */
+export function parsePoTerms(value: unknown): PoTerm[] {
+  if (!Array.isArray(value)) return [];
+  const out: PoTerm[] = [];
+  for (const row of value) {
+    if (!row || typeof row !== "object") continue;
+    const category = String((row as Record<string, unknown>).category ?? "").trim();
+    const text = String((row as Record<string, unknown>).text ?? "").trim();
+    // A row needs at least some text to be meaningful; category may be blank.
+    if (text) out.push({ category, text });
+  }
+  return out;
+}
diff --git a/App/prisma/migrations/20260624150000_terms_categories_table/migration.sql b/App/prisma/migrations/20260624150000_terms_categories_table/migration.sql
new file mode 100644
index 0000000..7fba9be
--- /dev/null
+++ b/App/prisma/migrations/20260624150000_terms_categories_table/migration.sql
@@ -0,0 +1,66 @@
+-- Rework Terms & Conditions (issue #11 follow-up): the fixed TermsCategory ENUM
+-- becomes a user-defined TermsCategory TABLE; clauses gain isDefault/sortOrder;
+-- PurchaseOrder gains a JSON `terms` snapshot. Existing enum-based clauses are
+-- migrated onto the new category rows. Forward migration (the original
+-- 20260624140000 migration is already released and stays untouched).
+
+-- Free the "TermsCategory" name (a table and an enum type cannot coexist).
+ALTER TYPE "TermsCategory" RENAME TO "TermsCategory_old";
+
+-- New category table.
+CREATE TABLE "TermsCategory" (
+    "id" TEXT NOT NULL,
+    "name" TEXT NOT NULL,
+    "sortOrder" INTEGER NOT NULL DEFAULT 0,
+    "isActive" BOOLEAN NOT NULL DEFAULT true,
+    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    "updatedAt" TIMESTAMP(3) NOT NULL,
+
+    CONSTRAINT "TermsCategory_pkey" PRIMARY KEY ("id")
+);
+CREATE UNIQUE INDEX "TermsCategory_name_key" ON "TermsCategory"("name");
+
+INSERT INTO "TermsCategory" ("id", "name", "sortOrder", "updatedAt") VALUES
+  ('tcat_general',  'General',               0, CURRENT_TIMESTAMP),
+  ('tcat_delivery', 'Delivery',              1, CURRENT_TIMESTAMP),
+  ('tcat_dispatch', 'Dispatch Instructions', 2, CURRENT_TIMESTAMP),
+  ('tcat_inspect',  'Inspection',            3, CURRENT_TIMESTAMP),
+  ('tcat_transit',  'Transit Insurance',     4, CURRENT_TIMESTAMP),
+  ('tcat_payment',  'Payment Terms',         5, CURRENT_TIMESTAMP),
+  ('tcat_others',   'Others',                6, CURRENT_TIMESTAMP);
+
+-- New clause columns.
+ALTER TABLE "TermsCondition" ADD COLUMN "categoryId" TEXT;
+ALTER TABLE "TermsCondition" ADD COLUMN "isDefault" BOOLEAN NOT NULL DEFAULT false;
+ALTER TABLE "TermsCondition" ADD COLUMN "sortOrder" INTEGER NOT NULL DEFAULT 0;
+
+-- Migrate existing clauses from the enum onto category rows.
+UPDATE "TermsCondition" SET "categoryId" = CASE "category"::text
+  WHEN 'DELIVERY'          THEN 'tcat_delivery'
+  WHEN 'DISPATCH'          THEN 'tcat_dispatch'
+  WHEN 'INSPECTION'        THEN 'tcat_inspect'
+  WHEN 'TRANSIT_INSURANCE' THEN 'tcat_transit'
+  WHEN 'PAYMENT_TERMS'     THEN 'tcat_payment'
+END;
+
+-- The original seed clauses become the PO defaults.
+UPDATE "TermsCondition" SET "isDefault" = true
+  WHERE "id" IN ('tcseed_delivery','tcseed_dispatch','tcseed_inspect','tcseed_transit','tcseed_payment');
+
+-- Drop the old enum column + type now that data is migrated.
+DROP INDEX "TermsCondition_category_idx";
+ALTER TABLE "TermsCondition" DROP COLUMN "category";
+DROP TYPE "TermsCategory_old";
+
+-- Enforce the relation.
+ALTER TABLE "TermsCondition" ALTER COLUMN "categoryId" SET NOT NULL;
+CREATE INDEX "TermsCondition_categoryId_idx" ON "TermsCondition"("categoryId");
+ALTER TABLE "TermsCondition" ADD CONSTRAINT "TermsCondition_categoryId_fkey" FOREIGN KEY ("categoryId") REFERENCES "TermsCategory"("id") ON DELETE CASCADE ON UPDATE CASCADE;
+
+-- Seed the previously-fixed boilerplate lines as default "General" clauses.
+INSERT INTO "TermsCondition" ("id", "categoryId", "text", "isDefault", "sortOrder", "updatedAt") VALUES
+  ('tcc_fixed1', 'tcat_general', 'Please quote this purchase order no. for further communications and invoices pertaining to this indent.', true, 0, CURRENT_TIMESTAMP),
+  ('tcc_fixed2', 'tcat_general', 'We encourage bulk packaging and avoid plastic. No asbestos to be used in any product or packing material.', true, 1, CURRENT_TIMESTAMP);
+
+-- Dynamic T&C snapshot on the PO.
+ALTER TABLE "PurchaseOrder" ADD COLUMN "terms" JSONB;
diff --git a/App/prisma/schema.prisma b/App/prisma/schema.prisma
index 6827f26..e8aa45e 100644
--- a/App/prisma/schema.prisma
+++ b/App/prisma/schema.prisma
@@ -410,30 +410,36 @@ model DeliveryLocation {
   @@index([companyId])
 }
 
-// Admin-managed Terms & Conditions clauses (issue #11). Each clause belongs to a
-// category matching one of the PO's named T&C slots; the PO form turns those slots
-// into dropdowns sourced from the active clauses of that category. The PO keeps
-// the chosen clause as a text snapshot in its tc* columns (point-in-time
-// document), so editing/removing a clause never rewrites historical POs. Managed
-// by manage_terms. ("Others" stays free text; the fixed boilerplate lines —
-// TC_FIXED_LINE / TC_FIXED_LINE_2 — are not catalogued.)
-enum TermsCategory {
-  DELIVERY
-  DISPATCH
-  INSPECTION
-  TRANSIT_INSURANCE
-  PAYMENT_TERMS
+// Admin-managed Terms & Conditions catalogue (issue #11). Categories are
+// user-defined data (not a fixed set) — admins add new ones — and every PO T&C
+// line is a catalogued clause, including the standard "fixed" lines (seeded under
+// a "General" category) and the "Others" bucket. The PO form is a dynamic editor:
+// add rows, pick a category, type/pick a clause. The chosen rows are stored as a
+// JSON snapshot on PurchaseOrder.terms, so editing/removing a clause never
+// rewrites historical POs. Managed by manage_terms.
+model TermsCategory {
+  id        String           @id @default(cuid())
+  name      String           @unique
+  sortOrder Int              @default(0)
+  isActive  Boolean          @default(true)
+  createdAt DateTime         @default(now())
+  updatedAt DateTime         @updatedAt
+  clauses   TermsCondition[]
 }
 
 model TermsCondition {
-  id        String        @id @default(cuid())
-  category  TermsCategory
-  text      String
-  isActive  Boolean       @default(true)
-  createdAt DateTime      @default(now())
-  updatedAt DateTime      @updatedAt
+  id         String        @id @default(cuid())
+  categoryId String
+  category   TermsCategory @relation(fields: [categoryId], references: [id], onDelete: Cascade)
+  text       String
+  // Pre-added to a new PO's default T&C set (reproduces the old standard wording).
+  isDefault  Boolean       @default(false)
+  isActive   Boolean       @default(true)
+  sortOrder  Int           @default(0)
+  createdAt  DateTime      @default(now())
+  updatedAt  DateTime      @updatedAt
 
-  @@index([category])
+  @@index([categoryId])
 }
 
 model Account {
@@ -578,6 +584,10 @@ model PurchaseOrder {
   tcTransitInsurance String?
   tcPaymentTerms     String?
   tcOthers           String?
+  // Dynamic T&C snapshot (issue #11): [{ category, text }] chosen on the PO form.
+  // When present it supersedes the legacy tc* columns for display/export; null on
+  // pre-feature POs (which still render from tc* + the fixed boilerplate lines).
+  terms              Json?
   poDate             DateTime?
   submittedAt        DateTime?
   approvedAt         DateTime?
diff --git a/App/tests/integration/terms.test.ts b/App/tests/integration/terms.test.ts
index 8bde67b..0b6c299 100644
--- a/App/tests/integration/terms.test.ts
+++ b/App/tests/integration/terms.test.ts
@@ -1,7 +1,8 @@
 /**
  * Integration tests for the Terms & Conditions admin CRUD (issue #11).
- * Covers create/update/toggle/delete + the manage_terms guard, and the
- * grouping helper used to feed the PO T&C dropdowns.
+ * Categories are user-defined data: adding a clause under a new category name
+ * creates the category. Covers CRUD + the manage_terms guard + the catalogue /
+ * default-terms helpers that feed the PO editor.
  */
 import { vi, describe, it, expect, afterAll } from "vitest";
 
@@ -16,7 +17,7 @@ import {
   toggleTermActive,
   deleteTerm,
 } from "@/app/(portal)/admin/terms/actions";
-import { getActiveTermsByCategory } from "@/lib/terms-data";
+import { getTermsCatalogue, getDefaultPoTerms } from "@/lib/terms-data";
 import { makeSession, fd } from "./helpers";
 
 const mockedAuth = vi.mocked(auth);
@@ -25,43 +26,51 @@ const asManager = () => mockedAuth.mockResolvedValue(makeSession("u-mgr", "MANAG
 
 afterAll(async () => {
   await db.termsCondition.deleteMany({ where: { text: { startsWith: PREFIX } } });
+  await db.termsCategory.deleteMany({ where: { name: { startsWith: PREFIX } } });
 });
 
 describe("createTerm", () => {
-  it("persists a clause under its category", async () => {
+  it("creates a new category on the fly and the clause under it", async () => {
     asManager();
-    const result = await createTerm(fd({ category: "DELIVERY", text: `${PREFIX}Within 2 days` }));
+    const result = await createTerm(fd({ categoryName: `${PREFIX}Warranty`, text: `${PREFIX}12 months` }));
     expect(result).toEqual({ ok: true });
 
-    const t = await db.termsCondition.findFirstOrThrow({ where: { text: `${PREFIX}Within 2 days` } });
-    expect(t.category).toBe("DELIVERY");
-    expect(t.isActive).toBe(true);
+    const cat = await db.termsCategory.findFirstOrThrow({ where: { name: `${PREFIX}Warranty` }, include: { clauses: true } });
+    expect(cat.clauses).toHaveLength(1);
+    expect(cat.clauses[0].text).toBe(`${PREFIX}12 months`);
   });
 
-  it("requires text and a valid category", async () => {
+  it("reuses an existing category (case-insensitive) for a second clause", async () => {
     asManager();
-    expect("error" in (await createTerm(fd({ category: "DELIVERY", text: "  " })))).toBe(true);
-    expect("error" in (await createTerm(fd({ category: "NOT_A_CATEGORY", text: "x" })))).toBe(true);
+    await createTerm(fd({ categoryName: `${PREFIX}warranty`, text: `${PREFIX}24 months` }));
+    const cats = await db.termsCategory.findMany({ where: { name: { startsWith: PREFIX, mode: "insensitive" }, AND: { name: { equals: `${PREFIX}Warranty`, mode: "insensitive" } } } });
+    expect(cats).toHaveLength(1); // no duplicate category
+  });
+
+  it("requires a category and clause text", async () => {
+    asManager();
+    expect("error" in (await createTerm(fd({ categoryName: " ", text: "x" })))).toBe(true);
+    expect("error" in (await createTerm(fd({ categoryName: `${PREFIX}X`, text: " " })))).toBe(true);
   });
 
   it("refuses callers without manage_terms", async () => {
     mockedAuth.mockResolvedValue(makeSession("u-tech", "TECHNICAL") as never);
-    expect(await createTerm(fd({ category: "DELIVERY", text: `${PREFIX}nope` }))).toEqual({ error: "Forbidden" });
+    expect(await createTerm(fd({ categoryName: `${PREFIX}X`, text: `${PREFIX}nope` }))).toEqual({ error: "Forbidden" });
     mockedAuth.mockResolvedValue(makeSession("u-acc", "ACCOUNTS") as never);
-    expect(await createTerm(fd({ category: "DELIVERY", text: `${PREFIX}nope` }))).toEqual({ error: "Forbidden" });
+    expect(await createTerm(fd({ categoryName: `${PREFIX}X`, text: `${PREFIX}nope` }))).toEqual({ error: "Forbidden" });
   });
 });
 
 describe("updateTerm / toggle / delete", () => {
   it("edits, toggles active, then deletes a clause", async () => {
     asManager();
-    await createTerm(fd({ category: "PAYMENT_TERMS", text: `${PREFIX}old wording` }));
-    const t = await db.termsCondition.findFirstOrThrow({ where: { text: `${PREFIX}old wording` } });
+    await createTerm(fd({ categoryName: `${PREFIX}Edit`, text: `${PREFIX}old` }));
+    const t = await db.termsCondition.findFirstOrThrow({ where: { text: `${PREFIX}old` } });
 
-    expect(await updateTerm(t.id, fd({ category: "INSPECTION", text: `${PREFIX}new wording` }))).toEqual({ ok: true });
-    const after = await db.termsCondition.findUniqueOrThrow({ where: { id: t.id } });
-    expect(after.text).toBe(`${PREFIX}new wording`);
-    expect(after.category).toBe("INSPECTION");
+    expect(await updateTerm(t.id, fd({ categoryName: `${PREFIX}Edit2`, text: `${PREFIX}new` }))).toEqual({ ok: true });
+    const after = await db.termsCondition.findUniqueOrThrow({ where: { id: t.id }, include: { category: true } });
+    expect(after.text).toBe(`${PREFIX}new`);
+    expect(after.category.name).toBe(`${PREFIX}Edit2`);
 
     expect(await toggleTermActive(t.id)).toEqual({ ok: true });
     expect((await db.termsCondition.findUniqueOrThrow({ where: { id: t.id } })).isActive).toBe(false);
@@ -72,22 +81,29 @@ describe("updateTerm / toggle / delete", () => {
 
   it("guards update/toggle/delete behind the permission", async () => {
     mockedAuth.mockResolvedValue(makeSession("u-tech", "TECHNICAL") as never);
-    expect(await updateTerm("x", fd({ category: "DELIVERY", text: "y" }))).toEqual({ error: "Forbidden" });
+    expect(await updateTerm("x", fd({ categoryName: `${PREFIX}X`, text: "y" }))).toEqual({ error: "Forbidden" });
     expect(await toggleTermActive("x")).toEqual({ error: "Forbidden" });
     expect(await deleteTerm("x")).toEqual({ error: "Forbidden" });
   });
 });
 
-describe("getActiveTermsByCategory", () => {
-  it("groups only active clauses by category", async () => {
+describe("catalogue + default terms helpers", () => {
+  it("getTermsCatalogue exposes active categories with their active clauses", async () => {
     asManager();
-    await createTerm(fd({ category: "DISPATCH", text: `${PREFIX}active dispatch` }));
-    await createTerm(fd({ category: "DISPATCH", text: `${PREFIX}inactive dispatch` }));
-    const inactive = await db.termsCondition.findFirstOrThrow({ where: { text: `${PREFIX}inactive dispatch` } });
+    await createTerm(fd({ categoryName: `${PREFIX}Cat`, text: `${PREFIX}active clause` }));
+    await createTerm(fd({ categoryName: `${PREFIX}Cat`, text: `${PREFIX}inactive clause` }));
+    const inactive = await db.termsCondition.findFirstOrThrow({ where: { text: `${PREFIX}inactive clause` } });
     await toggleTermActive(inactive.id);
 
-    const map = await getActiveTermsByCategory();
-    expect(map.DISPATCH).toContain(`${PREFIX}active dispatch`);
-    expect(map.DISPATCH).not.toContain(`${PREFIX}inactive dispatch`);
+    const cat = (await getTermsCatalogue()).find((c) => c.name === `${PREFIX}Cat`);
+    expect(cat?.clauses).toContain(`${PREFIX}active clause`);
+    expect(cat?.clauses).not.toContain(`${PREFIX}inactive clause`);
+  });
+
+  it("getDefaultPoTerms returns isDefault clauses", async () => {
+    asManager();
+    await createTerm(fd({ categoryName: `${PREFIX}Def`, text: `${PREFIX}default clause`, isDefault: "true" }));
+    const defaults = await getDefaultPoTerms();
+    expect(defaults.some((d) => d.text === `${PREFIX}default clause` && d.category === `${PREFIX}Def`)).toBe(true);
   });
 });