A sale Contract is required :
- When Your business will be selling goods (products) or services to another business.
- When Your business will be purchasing goods (products) or services from another business.
- When You are an individual purchasing services from a business.
A sales contract documents the terms of a sales transaction between a seller and a buyer. The contract should identify the product sold, the quantity, pricing, payment terms, quality standards and delivery terms. Additionally, the parties may specify any insurance requirements, termination provisions and the process for resolving disputes.
A contract of sale is a legal contract. It is a contract for the exchange of goods, services or property that are the subject of exchange from seller (or vendor) to buyer (or purchaser) for an agreed upon value in money (or money equivalent) paid or the promise to pay same. It is a specific type of legal contract.
A sales contract is an agreement between a buyer and seller covering the sale and delivery of goods, securities, and other personal property.
In many cases a purchase order, pro forma invoice, or order acknowledgment may serve in place of a formal sales contract. A purchase order is issued by the buyer and sent to the seller, stating the type and amount of goods to be purchased, the price, and any other material terms such as a time limit on filling the order. A pro forma invoice is issued by the seller and sent to the buyer, often in response to a purchase order or oral agreement. In international transactions, the pro forma invoice may enable the buyer to open a line of credit with which to pay for the goods ordered. The pro forma invoice typically includes relevant terms and conditions that apply to the sale.
A formal order acknowledgment is useful for establishing the seller’s position in case a dispute should arise. The order acknowledgment is drawn up by the seller in response to a received purchase order. It does not necessarily repeat the details of the purchase order, but it may clarify details such as delivery schedules. When a formal order acknowledgment is countersigned by the buyer, it becomes a type of sales contract.
For international transactions, the Vienna Sale Convention is binding on signatory countries. Each of the nations that has signed the convention may state up to five reservations. Acceptance of an offer that includes a request for additions or modifications constitutes a counteroffer. There is no provision requiring a contract be written in order to be enforceable. Sales contracts are useful in providing for a common understanding between buyer and seller, thus minimizing disputes. When a dispute does occur, the sales contract can help provide for a fair settlement.
A sale contract must incorporate:
- Delivery method
- Place of delivery
- Mode of delivery
- Cost of delivery and execution
- Statements and undertakings of buyer
- Statements and undertakings of seller properties of the mentioned products
- Cash price of the product
- Due dated price
- The advance payment of the product
- Withdrawal Right
- Failure to pay and the legal consequences
Following are the most important forms of sale contracts
- Goods and Services
- Real Estate
Following also relate to the sales contracts
- Commission Agreement
- Employee Bonus Plan
- Equity Incentive Plan
- Sales Representative Contract
- Change in Commission Structure
- Agreement to Purchase a Domain Name
- Car Selling Contract
- Consignment Agreement
- Agreement To Sell Personal Property
- Conditional Sale Agreement