Sales Contract Template
We have created Sales Contract template with simplicity in mind. It is an easy to use and ready made Sales Contract template that enables you to know exactly what the client’s responsibilities are and saves your time and money.
Free Sales Contract Template Samples
To help you grow your business we have made a quite simple yet reliable Sales Contract template in Word and PDF versions so you can use it repeatedly.
- Inspection
- Warranties
- Payment details
What is a Sales Contract?
What can I use a Sales Agreement for?
When Do I Need a Sales Agreement?
Not all sales require a sales agreement. They are commonly used for large, singular transactions or for frequent purchases over a limited period of time. However, it is most often used for selling real estate property.
You’ll want to make sure that you have an agreement in writing to ensure that it’s smooth sailing until the money and goods have been exchanged, and both you and the other party will want to know what to do if there are any issues along the way.
Businesses also use sales agreements when purchasing large amounts of material from suppliers or when acquiring another company.
Important Terms
What is included in a sales contract?
When creating or reviewing a sales contract it is vital to know which terms are most important and what things to watch out for.
A sales contract is a contract that lays out the terms of a transaction of goods or services. It identifies:
- Description of the Goods: The description of the goods is usually the most important term in a sales contract. This is because there is a lot of room for error with the description. Be sure that it identifies the exact goods the buyer wants to purchase and includes all the relevant details, such as: type, model number, weight, color, and size.This will ensure that the seller delivers the correct goods. Problems with the other terms of the agreement tend to resolve themselves so long as the buyer gets what they bargained for.
- Delivery Instructions: Delivering late or to the wrong location is another easy way to make a transaction fall apart. Therefore, make sure the contract is clear about the time and date of delivery, the delivery location, and which party is responsible for the risk of loss of the goods while they are in transit.
- Inspection Period: Many sales contracts leave out the inspection period. This period gives the buyer time to inspect the goods after delivery and reject any nonconforming goods. The inspection period varies depending on the type of goods involved. For example, with goods that have a short shelf life, such as perishable food items, buyers are usually required to accept or reject upon delivery. However, with more expensive items, such as machinery, buyers often have anywhere from a couple days to a month to inspect.
- Warranties from the Seller: Buyers often overlook the warranties being made by the seller. There is no such thing as “standard warranties.” Warranties vary across industries and from company to company, so be sure to closely review the seller’s promises. Are the goods being sold “as-it is”? Is the seller disclaiming the warranties of merchantability or fitness for a particular purpose? If so, this might undo any verbal promises about the goods made by the seller.
- Payment Details: Obviously, the total price of the goods is important, but don’t forget about the other payment details. Will the goods be paid for in installments or in one lump sum? Does the seller require a specific method of payment? If the buyer won’t be paying right away, it is common for the parties to also execute a promissory note to spell out the repayment terms in greater detail. Among other things, this allows the seller to charge interest and outline a repayment schedule.
Essentials Elements of a Contract of Sale
There are several details that will be included in a typical Contract of Sale, these include the following:
- Conditions of the sale, such as financing information or additional building inspections
- The names of the vendor and purchaser
- The property’s address
- The amount of deposit that must be paid
- The sale price of the property
- The date of the property settlement
- Whether the property will be available as a vacant possession, or if it is subject to a lease
- Other personal property sold as part of the package deal
Frequently Asked Questions
FAQs about our Sales Contract Templates
We recognize that your contract layout conditions may need to be changed to be in line together with your client’s needs. That’s why we have made Contract in Word format as well so that you’ll be able make adjustments as you like. If you want to make important changes to the template, we propose you to get help of a lawyer or conveyancer to make sure you still have protection.
The description of the services or goods is the most important aspect of a sales contract because it lists the exact goods or services that the buyer is paying for. As described above in the article with detail with the points that should be included in a Sales Contract.
Another important detail to consider is the date on which the purchaser signs the contract. This is the date when the three-day cooling off period starts. Many people mistakenly believe that the cooling off period doesn’t begin until the vendor signs, but that’s not the case.
Generally, the initial Contract of Sale is prepared by the seller’s real estate agent, conveyancer or solicitor. Details such as the selling price and settlement date are left blank for the purchaser making the offer.
The purchaser usually signs the Contract of Sale first. They submit their offer to the seller, which includes price and any additional conditions. From the moment the buyer signs the contract, it becomes a legal and binding document. It’s important to note that although it won’t be activated until signed by the vendor as well, it is still binding with only one signature.
While a Sales Agreement and Bill of Sale have similar purposes, a Sales Agreement offers a more detailed payment plan and provides warranties on the item. It also allows both parties more flexibility prior to completing the agreement by arranging terms to secure goods before they are purchased.
A Bill of Sale is a form evidencing that an item’s ownership has been transferred from one party to another. It can be used as part of a Sales Agreement to prove that the goods officially changed hands.
