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What is a Sales Contract?

A Sales Contract is a two-sided agreement that obligates each party to uphold certain agreements, such as the delivery of a quality product, for that product by a specific date. A Sales Contract is simple to make, provides more protection than a basic invoice or receipt, and also includes a confidentiality agreement to protect both businesses in a B2B sales transaction.

When to use a Sales Contract:

  • You sell goods or services and need more than just a simple receipt.
  • You need a sales agreement between you and your customer.
  • You want to document what happens if the buyer does not pay in full.
  • You want to charge interest on overdue balances.

Sample Sales Contract

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SALES AGREEMENT FOR

 

Order Number:

 

This Sales Agreement for (this "Agreement") is made effective as of , by and between , of , , , and , of , ,

 

the following services (collectively, the "Services"):

. ITEMS PURCHASED. agrees to sell, and agrees to buy, the following products (the "Goods") in accordance with the terms and conditions of this Agreement:

 

Description Quantity Unit Price Total Price

 

 

TOTAL

 

The Goods shall comply with the 's quotation dated and incorporated into this Agreement by this reference. Title to and risk of loss of goods shall pass to the buyer upon delivery F.O.B. at the seller's plant to an agent of the buyer including a common carrier, notwithstanding any prepayment or allowance of freight by the seller.

. PAYMENT. Payment shall be made to

 

Payment discount terms are a percent discount if total bill is paid within days.

In addition to any other right or remedy provided by law, if fails to pay for the Goods when due, has the option to treat such failure to pay as a material breach of this Agreement, and may cancel this Agreement and/or seek legal remedies as described below under "Remedies on Default."

 

. DELIVERY. Time is of the essence in the performance of this Agreement. will arrange for delivery by carrier chosen by . Delivery shall be completed by .

. WARRANTIES. warrants that the Goods shall be free of substantive defects in material and workmanship..

. INSPECTION. , upon receiving possession of the Goods, shall have a reasonable opportunity to inspect the Goods to determine if the Goods conform to the requirements of this Agreement. If , in good faith, determines that all or a portion of the Goods are non-conforming, may return the Goods to at 's expense. will terminate automatically upon completion by of the Services required by this Agreement.

. DEFAULT. The occurrence of any of the following shall constitute a material default under this Agreement:

 

a. The failure to make a required payment when due.

 

b. The insolvency or bankruptcy of either party.

 

c. The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of creditors, application or sale for or by any creditor or government agency.

 

d. The failure to make available or deliver the Goods in the time and manner provided for in this Agreement.

 

. REMEDIES ON DEFAULT. In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Agreement (including without limitation the failure to make a monetary payment when due), the other party may terminate the Agreement by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Agreement.

 

, or other labor disputes

. CONFIDENTIALITY. , and its employees, agents, or representatives will not at any time or in any manner, either directly or indirectly, use for the personal benefit of , or divulge, disclose, or communicate in any manner, any information that is proprietary to . and its employees, agents, and representatives will protect such information and treat it as strictly confidential. This provision will continue to be effective after the termination of this Agreement.

. NOTICE. Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the addresses listed above or to such other address as one party may have furnished to the other in writing. The notice shall be deemed received when delivered or signed for, or on the third day after mailing if not signed for.

 

. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties regarding the subject matter of this Agreement, and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.

 

. AMENDMENT. This Agreement may be modified or amended if the amendment is made in writing and signed by both parties.

 

. SEVERABILITY. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

 

. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

 

. APPLICABLE LAW. This Agreement shall be governed by and construed according to the laws of the State of without reference to its conflicts of law principles.

 

. SIGNATURES. This Agreement shall be signed on behalf of by and on behalf of by and effective as of the date first above written.

 

 

 

Buyer:

 

 

By: Date:

 

 

 

Seller:

 

 

By: Date:

 

 

Sales Contract FAQs

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  • What is meant by a Contract of Sale?

    A Contract of Sale is intended to protect both the buyer and seller. This contract defines the obligations for both sides of the transaction, including a promise to deliver the product as described, and an agreement to pay for the product by a certain date.

  • What are the characteristics of a Contract of Sale?

    Typically, a Contract of Sale will include provisions for non-payment, product damage, dispute resolution, confidentiality, severability, and waiver of contractual rights.

  • How do I write a Sales Contract?

    Making a Sales Contract online is simple. Just answer a few questions, and Rocket Lawyer will build your document for you. Consider these questions beforehand to make the process speedier:

    • When will the contract become effective?
    • Will you specify quality standards that the goods must meet? If so, what are they?
    • How will the service provider or seller be paid?
    • Will payment discount terms be included? If so, what are the payment discount terms?

    If you don't have all of the details you need, you can skip questions, and save your document for later.

  • What is most important in a Sales Contract?

    The most important aspect you should pay attention to in a sales contract is the 'description of the goods' section. Problems may arise if the description isn't precise, so it is vital that you include an accurate, detailed description of the goods the buyer wants to purchase.

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