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How to Create a Sales Contract?
The purpose of this type of contract is to legally bind a seller and a buyer into fulfilling their obligations to one another. What this means is that whatever terms the two have agreed upon when it comes to a sale they're involved in, they are required to accept them should they decide to sign the legal document. This is very helpful in ensuring that both parties are entering a fair exchange. So whether you're selling land, a vehicle, a house, or even a horse, always make sure to prepare a sales contract.
1. Identify the Parties Involved
The first step when making any kind of sample contract is to identify which of the parties involved is the buyer and which one is the seller. This is very helpful to point in what obligations which party member is required to fulfill. Place the complete name of both buyer and seller and make it clear as to which one has the designated role. If one of the party members is a business contract member, then place the business's name along with the name and title position of the representative.
2. Provide Details on What's Being Sold
Now you will need to write down what it is exactly that is being offered to the buyer. When doing this, you need to write down the full legal description of the product and/or service contract that is being sold. For example, let's say that a customer wishes to purchase a car from you. Your contract should list down all the details from the quantity being sold to the car's make, model, year, color, etc. Do this for every item that is involved in the sale as this is very important in the event that one needs to verify what they are.
3. Explain How Payment Should be Handled
Start by pointing out how much the buyer should pay for whatever items are being sold to him/her. Next, you will need to write down the date in which he/she is expected to make the payment. Lastly, you must provide the method of payment that the buyer can use to make the payment. Know that the more methods you allow him/her to use, the better your chances of being paid on time.
4. State Other Conditions and How Disputes Should be Settled
It is here where you can place other legal agreements such as ones that are non-confidential or non-exclusive ones that both parties should follow. Also, include how parties may settle any disputes between them. Decide if they settle it among themselves or if they will leave it up to a judge to decide. You can also state what laws are applicable here should either party breach the contract.
5. Place Spaces for Signatures
Lastly, create a space where both the buyer and seller can sign should they decide to push through with the sale. Make sure that there are enough spaces for both the names and signatures of both parties. Also, include one more space for writing down the date in which the contract was signed.
