What Should Be Included in a Sales Agreement?
Sales agreements and sales contracts are often full of fine print and obscure legal terminology, but most of them boil down to a handful of basic points. When you draft an agreement or study an existing agreement, look for these elements:
- A detailed description of the goods or services for sale
You may want to attach a separate list or schedule to the agreement that covers this. - The total payment due, along with the time and manner of payment
If the buyer plans on paying in installments, describe the installment plan. - The responsible party for delivering the goods, along with the date and time of delivery
- Who is responsible if the goods are lost or damaged during delivery
- Warranty or guarantee information for the goods or services
- How long the buyer has to inspect or evaluate the goods before taking legal possession
- How each party must deliver changes or notices related to the agreement
- The state whose laws will govern the agreement
- A clause stating that the agreement is the only legal document covering the sale and that no other agreements, written or oral, will be legally binding.
- A clause stating that both parties must approve any changes or additions to the agreement in writing
