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Sales Agreements

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The Ultimate Guide to Sales Agreements

Related contracts and agreements

What is a Sales Agreement

 

A sales contract is a legal contract that governs the purchase of a assets or services buy a purchaser from a seller. These are also commonly referred to as sales agreements, customer agreements, customer contracts, etc.

What are the key terms of a Sales Agreement

 

Parties

clause that outlines all parties involved in the transaction.

Definition of Goods or Services

clause that lays out products or services being exchanged on the transaction.

Details of Payment

section that defines when and how the seller is compensated by the buyer.

Delivery Specification

section that outlines exactly what the seller will be delivering to the buyer.

Limitation of Liability

section that limits the liability of the seller in the instance there is an issue with the product or service.

Notice Period

section that outlines the time the buyer can report any issues with the product or service.

What issues to keep in mind?

 

Details on Payment

payments for goods and services is always a point of negotiation in a sales contract. Some businesses request 15-day, 30-day, 45-day, etc payment terms. Make sure you understand what the buyer is committing to so you can best manage your cashflow.

Limitation of Liability

Whenever possible, make sure you have a cap for your liability for goods or services you are providing. You do not want to be in a position where something goes wrong with your product or service, and your liability is undefined. This is the type of risk that can jeopardize your business.

Notice Period

Make sure you have a defined notice period that is understood by all parties involved in the transaction. If you do not include one, you risk a customer coming back months after you deliver the product or service and asking for a refund.

Bill of Sale

Service Agreements

Nondisclosure Agreements

Confidentiality Agreements

Helpful articles about sales agreements

How much does it cost to draft a contract?

Contracting playbooks for sales teams

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