Sales Contract Template – For Businesses

Sales contracts are probably one of the most popular contract types. You come into contact with sales contracts all the time whether you know it or not. However these sort of sales contracts are unwritten, and formed by conduct. An example of this is buying food from a shop. You don’t sit down and negotiate an agreement, your actions form the agreement.

The reason we don’t need a written contract for these types of deal is because of their simplicity. You see an item in a shop, agree to the price, and go and buy it. If it doesn’t work you return it in accordance with store / state policy.

However sometimes matters are more complicated. Especially between two businesses. This is where more specific terms of sale are needed. Our sales contract template will help for this, but on this page we will look more generally about the terms included in sales contracts.


The whole idea of a sales contract is to make everything nice and clear and state exactly what will happen if something goes wrong.

First of all it’s a good idea to introduce the buyers and sellers along with their contact details so there is no dispute who the sale goods are going to. Next there should be a detailed explanation of the exact goods which are up for sale. This section obviously depends on what you’re going to be selling so it’s hard to give general advice. One thing I can advsie though is just to describe the product in as much detail as you can. Answer questions like:

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* What are the dimensions?
* How many are there?
* What is it compatible with / what can it be used with
* What color is it?

For example if we were selling a TV, we would need to describe it in more detail than if we were selling paper. You would need to say exactly what it does so people don’t get the wrong impression about it. How much hair will it remove? How long will it take to work? What other settings are there? Does it stop working after a certain amount of time? Especially when selling beauty or technology products the description needs to be clear.

Next you should stipulate payment. There could be differing types of payment. It could be a one off bulk payment or a reoccurring payment for example. Regardless, the date of payment and the amount should be clearly stated.

Lastly, before the contract is to be signed, there should be a special conditions section. This will state who will be liable for delivery, if the seller needs to provide refills, if the seller can provide replacements, or even if they are also providing personnel to assist with the item being sold. There really is massive scope for this section. It all come down to the product being sold. Some contacts may not even need this section in the case of a very simple sale.

Remember that contracts for sale can be as simple or as complex as you like. They could be half a page long, or twenty pages long. Have a look at our basic sales contract template. It should cover basic sales agreements.

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