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Sales Contract Template

Sales Contract Template

by stacy

Congratulations on securing your first high-value customer! All that remains is for you to establish a legally binding sales agreement that will protect your company’s legal rights – by clearly describing the conditions of payment, ownership, delivery, and scope of work. But, do you have any idea how to do it? When it comes to making this agreement thorough and legally binding, what clauses are essential to include. From assisting you in understanding why you require a sales contract template to providing you with a full section-by-section overview of the most critical elements, we have you covered. Continue reading because we’ll also supply you with a free sales contract template that’s printable and easy to use.

What is a sales contract?

It is essential that you have a written sales contract (also known as a sale of products contract or purchase agreement) with your client since it helps you set expectations with them. This agreement between a buyer and a seller will clear up any ambiguity regarding the sale, delivery, and warranty of products, securities, and other personal property between the two parties involved. As soon as both the buyer and the seller confirm the online sales contract with an electronic signature, it indicates that the parties have reached a mutual understanding, reducing the likelihood of future conflicts.

When do you need a sales contract?

Having a sales contract form on hand may be quite beneficial when disagreements arise between customer and seller – whether they are linked to any fraudulent behavior, supply delays, or payment failure. Because this legal document clearly outlines all of the subtleties of the transaction, it makes it much easier to reach a mutually agreeable settlement.

Sales contracts, in this sense, serve to protect the interests of both the buyer and the seller.

Additionally, the sales agreement or products agreement serves as a mechanism for both parties to review the terms of the transaction.

Under the Uniform Commercial Code (UCC), to be legally enforceable, all domestic (inside the United States) sales contracts for the sale of securities and products valued at more than $500 must be in writing, according to the law.

What goes into a sales contract?

It was never stated that if you chose to design your own sales contract, it must be done from the ground up. To complete the transaction, all that is required is a solid template that outlines every obligation that both buyers and sellers have during the purchasing or selling process.

We will attempt to explain which terms and conditions are the most relevant and which clauses you should be on the lookout for during this post. Make certain that you meticulously follow these processes, from the initial introduction to the final signature, to protect your company from legal implications.

Establish the fundamental basis of the deal.
First, introduce the buyer and seller in the transaction by providing their full names, positions in the transaction, as well as their mailing and email addresses. It’s also a good idea to state the date on which the contract becomes enforceable to avoid confusion.

Establish the fundamental basis of the deal.
Following that, you outline the intentions of the sellers and buyers of the product to establish the background or basis for a legally binding contract. Make sure to describe the goods being sold in the [PRODUCT] placeholder by mentioning the brand name, kind, quantity, order number, and any other relevant information about the purchase or the product.

Recital
In this section, we’ll go over the numerous legally binding terms and conditions contained in this Sales Contract form, beginning with the sale part that (perhaps) matters the most – the payment details.

Make certain that the payment terms are clearly stated.
What is the amount that the client is paying? When does the invoice have to be paid? Will they be paying with cash, a check, or an electronic payment? Who will be responsible for paying the taxes? In this area of the sales contract template, the answers to all of these questions (as well as others) must be worked out in detail.

Dates and conditions of payment
Here are some other pieces of information that should be brought to your attention:

Whether the payment is made in a single lump sum or several instalments
Discounts, installation fees, and delivery fees are all included.
The mechanics of how you intend to raise the price of a good throughout a long-term contract, including the timing of price increases.
Outline the components of delivery and ownership that are important to you.
For the goods to be delivered on time, you must ensure that both parties are aware of the projected delivery date. Keep track of who will be accountable for the products (and who will bear the risk of loss) while they are being sent to the buyer and when ownership (title) will be transferred to the buyer as well.

Aspects about delivery and ownership
Pro tip: When creating this section, be sure to include any information about return policies or trial periods that may be applicable.

Define the procedures to be followed in the event of defaults, delays, or breaches.
This section of the contract ensures that buyers will not be trapped with counterfeit, poorly functioning, or incorrectly manufactured goods. Additionally, merchants may make certain that erroneous claims regarding the quality of the goods are not made, even after the goods have been delivered. As a result, make sure you specify how buyers and sellers should behave if the delivered order does not match the order description provided.

Defaults, delays, and violations are all possible.
Following that, describe the types of instances in which either party can assert that the contractual conditions are not being adhered to. After that, make a list of the steps that must be taken once the contract has been terminated.

Keep in mind that you might insert a provision in the limitation of liability clause that specifies the maximum amount of damages that either party is responsible for paying.

What warranties apply to the goods

The terms “explicit warranty” and “implied warranty” refer to two different types of warranties. An express warranty is a guarantee given in writing or verbally by the vendor that the product will be repaired or replaced if it is defective. It is an implied warranty when there is no formal guarantee that the service or product sold will perform as intended.

Warranties
The warranty clause shown above is the simplest possible. The term ‘as is’ is used to indicate that the vendor makes no representations or warranties regarding the quality of the items. This means that the seller will not be held liable for any difficulties with the product as long as they have not lied or attempted to conceal fundamental flaws in the product before sale.

A lot of sellers include a limited warranty or extended warranty clause in their sales agreements, under which the seller warrants to the buyer that they will repair or replace products if there are any manufacturing defects (i.e., issues with material and workmanship) for a period of 90 days to a year after the product is shipped.

Legalese that isn’t necessary, but is nonetheless present.
It is the goal of this part to bring to light features of the sale contract’s basic nature, such as the laws that govern it and other such considerations. Unlike many other industries, it is unusually consistent and does not differ significantly among locations or businesses.

Signing the sales contract

Finally, we come to the most important component of the agreement: the attestation section of the agreement. Unless both parties sign the sales contract, it is nothing more than a piece of paper with a lot of language on the backside. In a court of law, the signature of the document is what confers legal validity on the document. It is preferable to utilize an electronic signature tool to permit the signing of your sales deed, especially if the buyer and seller are located in different locations, as is the situation with the vast majority of sales contracts nowadays.

Not only can electronic signature software save time by eliminating the need for printing, couriering, scanning, and other time-consuming procedures, but it is also just as legally binding as the traditional physical signature.

And here’s the best part: you can sign documents from anywhere in the world by just downloading the SignEasy app to your smartphone. In other words, the next time you’re on a sales trip and you need to sign a sales contract quickly, you’ll know that all it takes is a single click!

Things to remember when drafting a sales contract

Important considerations to bear in mind when writing a purchase and sale agreement
Recall that a sales agreement or a purchase agreement can be as brief or as detailed as is necessary for the specific needs of your transaction, depending on the circumstances. A more thorough contract is more likely to keep loopholes at bay, but it will also add to the overall complexity of the document, which is undesirable. However, in either case, avoid employing a lot of jargon or confusing terminology in your communication. Additionally, the following are some additional provisions that you may wish to consider including:
Every state has slightly different rules, therefore you should consult with a local attorney before proceeding with the transaction.
Many times, each side defines terminology in a way that is distinct from the other. As a result, to eliminate any ambiguity in the interpretation of the contract, you may include a list of definitions within it.
Many businesses choose to use mediation or arbitration to address any problems arising from the sale rather than going to court because it is far less expensive than going to court.
You may want to incorporate an arbitration clause in your contract, such as this one.

Download your free sales contract template

Arbitration – You have the option of including many more clauses in the contract if you feel they are necessary. Here are some links to sample clauses that you may find useful as a starting point:
In the event of a force majeure
Customer Confidentiality Clauses That Are Most Popular
Clauses governing the ordinary course of business
Make sure to include one notary acknowledgment slip for each buyer and seller, if you plan to have a notary witness the signing of this document for you. While this is not a mandatory step, it will help to further establish the legitimacy of your agreement in the event of a disagreement in the future.
Get your free sales contract template by clicking here.
Now that you’re familiar with the basics of a sales contract, here’s a fast reference guide to get you started. Simply download our detailed contract template, edit it to meet your individual needs, and then attach your firm letterhead at the bottom of the document. And there you have it! Your sales contract or purchase agreement is complete and ready to be shared and signed by all parties involved.

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