Sales Agreement Template
A sales agreement template is a legal document which is used to protect the sales transaction. A sales transaction is one under which the rights of ownership are transferred to the buyer against the consideration after mutually agreed on terms. The consideration can either be money or other financial instruments, or it can be settled against other products like bill of sales. The terms of transaction can also be varied from nature of business to product specification. A sales agreement plays the role of guardian and makes sure, all parties of agreement remains within the terms of agreement till the life. The life of an agreement usually based on the nature of transaction as well as credit terms. As per general business practices, people have observed Three to Five years maximum life of a sales agreement. Normally, people prefer a One-year life of an agreement where they can transfer goods against receiving sales invoice with complete consideration. However, in case of any special clause in sales agreement, then the validity or end term can be extended. Similarly, the life of an agreement can also cut short based on special clauses by the all or any party involved.
Details of Sales Agreement
A sales agreement can be enforceable by local authorities under the provision of law. There are some essentials for a sales agreement to be valid, for instance; transfer of power or property, receiving consideration, sales quotation, legal business, legitimate buyer and seller, actual transfer of possession of products or services and a valid life. It is very important for involved parties to know about essentials of a valid agreement. A sales agreement needed to be sign first by all parties involved before buying any products, commodities or services. A professional agreement contains the following content within it which needed to read by all parties. This includes the following, but not limited to;
1- Name and Address of all parties involved in agreement.
2- Date
3- Nature of Business Transaction and details.
4- Product or service specification with Price and number of units.
5- Actually transfer of possession or ownership from seller to buyer.
6- Mode of payment/s and all general terms.
7- Inclusion of special clauses.
8- Confirmation of reading all clauses by all parties.
9- Signature of all parties involved.
A sales agreement is hard to prepare by anyone since it includes legal content. Nevertheless, you can save plenty of your precious time as well efforts by download it from available online resources. There are multiple online resources which are providing free agreement templates. You don’t need to make agreements from scratch.
Essentials of Sales Agreement
Like any other agreement or contract, a sales agreement must have standard essentials before considering legally valid. These essentials are the same for all other business agreements. Here is a list of these essentials with brief description of each:
• Intention to Create Legal Relationship: All parties of sales agreement must have intention to create legal relationship. They can get willingness by writing a sales letter to each others.
• Proper Offer and Acceptance: There must be two or more parties to make offer and acceptance in proper way to make the contract valid.
• Lawful Object: The purpose of agreement must be lawful to make it valid agreement and as per sales plan.
• Lawful Consideration: There must be something in return to make the contract valid.
• Free Consent of Parties: The acceptance must not be attained by coercion, undue influence, fraud, misrepresentation or mistake. It must be free.
• Certainty of Meaning: A sales agreement should contain clear and understandable wording.
• Capacity of Parties to Contract: All parties entering into contract must be competent and capable for entering into an agreement.
• Possibility of Performance: If the act is impossible to perform, contract will not be valid.
• Legal Formalities: It depends upon nature of contract that it should be in writing or not. All legal requirements must be fulfilled.
• Agreement Not Expressly Declared Void: The nature of agreement should not be of type that has been declared to be void by state.
How to Prepare a Sales Agreement
A sales agreement can be prepared by an individual, if he/she knows what is crucial to know. There are essential points which we have already discussed above. But, if you are preparing it for the first time, then following are few tips which you need to be kept in mind while preparing a sales contract. These are give below for your comfort and ease;
• The format of sales agreement must be perfect. You can view a professional sales agreement template to follow its format. Editable sales contract templates are also available online that can be used by entering necessary information.
• In order to prepare a sales agreement, you must keep in mind that the subject of a contract should be goods that are sold and bought. Sale and purchase of goods are proceeding according to the Transfer of Property Act. Basically, movable property is regulated through sales contract between buyer and seller.
• A sales agreement is regulated between two parties, one is seller and other one is buyer. Another thing that is very important, is an individual cannot purchase his/her own goods. Complete contact details of buyer and seller is also mentioned in this agreement.
• Basically, transfer of property in the goods is also mentioned in case of pledge. When there is case of pledge in sales contract, only goods of special property are sold and purchased. The ownership of goods is transferred in a sales contract and there is no physical delivery/transfer of goods.
Templates for Sales Agreement
