Sales Agreement Form

Sales contracts are often full of fine print and obscure legal terminology, but most of them boil a handful of basis points. When you write a contract of sale, be sure to include these provisions to ensure clarity and enforceability:

1. Description of the Parties and property. The sales contract must contain a detailed description of the parties involved in transactions and the goods or services to sell. What is the selling party to propose amendments? When will they give? If extensive or ongoing, this list may be in the form of a separate list or schedule attached as an exhibit.

2. Cost. The sales contract must take into account the compensation or cost for the items, including the total payment due, with the time and method of payment. If the buyer plans to pay in installments, the agreement should describe the payment plan.

3. Delivery. The purchase contract must address all aspects of delivery of the goods. Which party will be responsible for delivering the goods physically? When will delivery occur? Is the buyer's inspection of goods before delivery? When does it happen that inspection? If necessary, title to occur at the delivery point or at a later date? This provision must carefully answer all these questions and address other delivery problems.

4. Responsibility. The agreement must identify the party responsible if the goods are lost or damaged during delivery. Usually, the seller is liable for damages if the damage occurs during delivery, but this is not always the case and may be worded differently.

5. Escrow. In any case such as real estate and wholesale sales contracts, the agreement must determine whether or not the buyer will put money on deposit, which the bank is acting as escrow agent, and when and under what conditions the money receiver will be published.

6. Damages. The sales contract may contain a provision for liquidated damages. This clause should specify that in case of breach, the defaulting party is liable for all losses, including lost profits, suffered by the non-defaulting party.

7. Representation of warranties and guarantees. Where appropriate, the agreement should contain all applicable covenants, representations or warranties of the seller is made in respect of goods sold. This may include a guarantee that the seller is the rightful owner of property and goods are owned free and clear of all liens, charges or disputes related to securities.

8. Disclaimer. Where appropriate, the agreement may contain a provision warning that the products are sold "as is" and seller will not be liable for any defects, patent, latent or otherwise. This provision is usually reserved for the sale of used goods.

9. Integration. The agreement should include a clause that recites that the agreement constitutes the entire agreement between the parties with respect to the object in question, and all prior agreements, express or implied, oral or written, are superseded by this agreement .

10. Severability. The agreement should recite that if a provision of the agreement is deemed void, invalid or unenforceable, that provision shall be severed from the remainder of the agreement, all remaining provisions shall remain in full force and effect.

11. Amendment. The editor of the contract of sale may want to clarify that, except as otherwise provided, the agreement may be amended, replaced or terminated on a written document signed by the parties. This will avoid the confusion that can occur if the parties were able to modify the agreement orally.

12. Law / Enforcement. The agreement should conclude with the identification of governments.