Sales-Related Business Contracts and Agreements Your Company May Need

Jake Posey [email protected]

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Establishing a company involves a lot of your time, energy, and attention—not to mention the tremendous amount of paperwork and contracts that are needed to avoid litigation and limit your liability in the future. Having well-drafted business contracts early on can help prepare you for legal action, should you face any down the road. 

While many types of businesses need different business contracts, every company needs to identify and create the necessary contracts for their specific operations. There are many contracts you will and won’t need, depending on the nature of your business.  For example, if your company is involved in the sale of goods, you will need to have certain sales-related business contracts in place, such as:

• Security agreement
• Warranty
• Limited warranty
• Purchase order
• Sales contract (bill of sale)

Sales Contracts and Agreements

In order to avoid confusion, a sales contract is needed to outline the agreed upon terms and conditions of the sale. This is also referred to as a sales agreement or bill of sale form. While there are many forms available for free online, most businesses need a sales contract drafted for their specific needs to protect against certain contingencies. The contract should include the following:

• Identify you as the seller or buyer
• Describe the goods being sold including model or serial numbers
• Terms of payment, method of payment, and due date
• Other payment information such as warranty, finance or delivery charges
• Installment plan due dates and default information
• Terms of delivery, including how the goods will be delivered and time frame of delivery
• Who is responsible if goods are damaged or lost in transit
• What the warranty covers and the time period of that warranty
• Clauses about making changes to the agreement

Every sales contract should be drafted for each business’ needs. No matter how small or large of a business you run, it is critical to your livelihood that you have the necessary sales contracts and other business contracts in place to protect your company.

For help creating your business contracts, call the Posey Law Firm today at 888-269-1962 or locally at 512-646-0828 to speak with an Austin business contract attorney and ensure you have the correct legally binding documents in place that can hold up in a court of law.