A sales contract is a legal written document that records the exchange of goods and services made between the vendor and buyer. This contract records the business transaction between the two parties. This contains terms and conditions that have been mutually agreed upon by the vendor and buyer. This must be constructed with careful planning and it is preferable to consult an attorney for the documentation of such a contract. The contract makes promise of payment that will be made within the stated period of time. The sales contract should also have the required details about the item or service for which this has been created.
Sales contract is generally used by car dealers, traders etc who cannot rely on verbal promises for purchasing or sales. Therefore, it is essential that all following key features of the transaction are to be mentioned clearly.
- Every sales contract must have the necessary contact information of the two parties involved. This should include the legal names of companies or persons for both vendor and buyer.
- The terms and conditions of sales should be properly stated in the contract. This will include the purchase agreement for the buyer and the terms of sales. The supply and payment terms are the most important part of the contract and must be very clearly mentioned.
- There must be legal clauses mentioned in the contract which will elaborate on the actions to be taken if either party fails to follow through with the contract.
- It is also essential that the contract is formulated in the simplest manner. There should be no confusion while trying to interpret the sales contract.
- It is important that this contract is preserved for future reference. There may be certain legal necessities that need to be fulfilled even after the transaction has been completed.