Customers and clients naturally want to protect their rights when purchasing products, especially since sales involve putting their money in your hands — the seller. This is why every business that involves transacting services, goods, real estate properties, and other products require a formal agreement known as a sales contract to protect all parties involved.
It doesn’t matter if the transaction involves a small-scale or large-scale purpose, so long as goods or services are exchanged for payment. That’s why it’s wise to have a sales contract to ensure both parties reach a smooth-sailing conclusion to their arrangement. With that in mind, it’s important to cover all the essential elements that make for an effective sales contract:
Essential Elements of a Sales Contract
1. Clear and Accurate Description of the Goods or Services
The buyer needs to fully understand what they’re purchasing from your business, so creating descriptions for your offer should leave little-to-no room for error. Confusing the buyer can lead to costly and legal complications, so be sure to include all relevant details from the type, model number (if applicable), weight, color, size, and other defining qualities of your goods.
2. Direct and Prompt Delivery Instructions
Loyal customers can quickly lose their trust in your business if your delivery fails at some point in the road. That’s why the relationship doesn’t end once consumers buy your goods or services — it’s a work in progress that requires careful attention every step of the way. When it comes to making delivery instructions, be sure to be clear about the exact time, date, location, and which party will be held liable for the loss of the goods in case it happens.
3. Inspection Period
Most sellers take out the ‘inspection period’ in their sales contract, but it’s a necessary element if the goods you offer are time-sensitive. For instance, perishable goods require customers to either accept or reject the item upon delivery to give your business the chance to replace the product accordingly.
4. Warranties and Guarantees
Every product needs a warranty to give your customers peace of mind that your offer doesn’t have any manufacturing defects. Warranties depend on your business and industry, but all should meet the purpose of giving your consumers the right to fix any malfunctions with your goods.
5. Payment Details
The sales contract would benefit the buyers more, but it protects sellers like you by defining the payment terms. This gives you the right to charge interest and other crucial details like the installment period, preferred payment method, and other considerations.
The Bottom Line: The Pivotal Role a Sales Contract Plays in Every Transaction
Purchasing goods or services that fail to meet your standards can hurt anyone’s wallets, while having to sell to buyers who don’t follow the agreed payment timeline and methods can be damaging in more ways than one.
Both parties are in trouble if one or the other doesn’t meet their end of the bargain; that’s why drafting a proper contract is crucial in guaranteeing the satisfaction of the buyer and seller.
Where Can I Get a Contract Management Software?
Dealing with contracts can be quite intimidating. With all the legal jargon and details you need to include, automated contract drafting and contract management is the answer to your contract development woes.
Anapact is a contract management software that provides effective contract management solutions for small and medium-sized businesses. We strive to reduce your risks, empower your team, and streamline your workflow with our contract management software. Try our software today!