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Document and article by on December 5, 2023 Written by Easy Legal Docs Editorial Team

A Sales Contract is a legally binding document that serves as the foundation for a transaction between a seller and a customer. It meticulously outlines the terms and conditions under which goods or services are sold, providing a comprehensive framework for the entire transaction. The contract typically includes a detailed description of the goods or services being offered, the agreed-upon pricing structure, and the terms for payment.

But it doesn’t stop there. A Sales Contract also looks into logistical aspects, specifying how and when the goods will be delivered or the services rendered. This often includes shipping methods, delivery timelines, and the location where the goods will be received or services performed.

Use Cases: When Do You Need a Sales Contract?

Sales Contracts are versatile documents that can be employed in a variety of business scenarios. Understanding when to use one can help you navigate transactions more effectively. Here are some common use cases where a Sales Contract is invaluable:

Selling Physical Goods

Whether you’re a retailer selling consumer electronics or a manufacturer distributing industrial machinery, a Sales Contract outlines the specifics of the goods, from quantity and quality to delivery and payment terms.

Providing Services

If you’re in the service industry—be it consulting, marketing, or home repairs—a Sales Contract can specify the scope of the work, deadlines, and payment schedules. It can also clarify what happens if additional services are needed beyond the initial agreement.

Business-to-Business (B2B) Transactions

In B2B settings, Sales Contracts are often more complex, involving multiple layers of terms and conditions. They may include clauses related to confidentiality, exclusivity, and long-term collaboration.

Real Estate Sales

While specialized contracts are often used for real estate, a Sales Contract can serve as a preliminary agreement before the final closing documents are drawn up. It can outline the sale price, closing date, and any conditions that must be met before the sale can be finalized.

Online Sales and E-commerce

In the digital age, Sales Contracts are also used for online transactions. These contracts may include additional clauses related to digital delivery, software licensing, or online subscription services.

Freelance and Gig Work

Freelancers and gig workers can use Sales Contracts to define the scope of a project, payment terms, and deliverables. This provides a layer of protection and clarity for both the service provider and the client.

Versatility is Key

The versatility of a Sales Contract makes it a go-to document for various types of transactions. Whether you’re selling goods, offering services, or entering into a long-term business partnership, a well-crafted Sales Contract serves as the backbone of the deal. With our customizable Sales Contract template, you can adapt the document to fit any of these use cases and more. Click ‘Create Document’ to get started.

Why Do You Need a Sales Contract?

A well-crafted Sales Contract serves multiple functions, from legal protection to fostering professionalism. Let’s look into why a Sales Contract is not just beneficial but indispensable for your business.

Legal Protection

A Sales Contract protects both the seller and the customer by clearly defining the terms and conditions of the sale. It serves as a legal document that can be referred to in case of disputes or misunderstandings.

Clarity and Transparency

The contract lays out all the details of the transaction, from the description and quantity of goods to the payment terms. This ensures that both parties have the same understanding of the deal.


Using a well-drafted Sales Contract reflects professionalism and can instill confidence in your business relationships. It shows that you take your obligations seriously and are committed to a transparent transaction.

How to Write a Sales Contract: A Step-By-Step Walkthrough

Creating a Sales Contract might seem like a daunting task, but it doesn’t have to be. With our customizable Sales Contract template, you’re already halfway there. Here’s a step-by-step guide to help you understand each section and how to fill it out.

1. Effective Date and Parties Involved

The first section specifies the effective date of the contract and identifies the parties involved—namely the seller and the customer. Make sure to include full names and addresses to clearly identify both parties.

2. Description of Goods and Pricing

This section is the heart of the Sales Contract. It outlines the goods or services being sold, their quantity, unit price, and total price. Be as detailed as possible to avoid any misunderstandings later on.

3. Payment Terms

Here, you’ll specify how the customer is expected to pay for the goods or services. Include details like the total purchase price, due date for payment, and any late fees that will be incurred for delayed payments.

4. Delivery and Shipping

This section outlines the logistics of how the goods will be delivered to the customer. It should specify the delivery location, the method of shipping, and who will bear the shipping costs.

5. Warranties

In this part, you’ll define any warranties that come with the goods or services. If no additional warranties are provided, make sure to state that the goods are sold “as is.”

6. Inspection

This clause allows the customer to inspect the goods upon delivery. It’s a safeguard that enables the customer to verify that the goods meet the agreed-upon standards.

7. Risk and Title

This section outlines when the risk of loss or damage to the goods transfers from the seller to the customer. It also specifies when the title to the goods transfers, which is usually upon delivery.

8. Force Majeure and Limitation of Liability

This clause protects the seller from liability in case they are unable to deliver the goods due to circumstances beyond their control, like natural disasters or labor strikes.

9. Termination

Here, you’ll specify the conditions under which either party can terminate the contract. Include how much advance notice must be given and in what format (e.g., written notice).

10. Governing Law

This section specifies which jurisdiction’s laws will govern the Sales Contract. This is especially important for transactions that cross state or national borders.

11. Amendments and Severability

This part outlines how the contract can be amended and what happens if a part of the contract is found to be unenforceable.

12. Signatures

The final section is where both parties sign and date the contract, making it legally binding.

By following this step-by-step guide, you’ll be able to create a comprehensive Sales Contract that protects your interests and sets the stage for a successful transaction. Click ‘Create Document’ to start customizing your Sales Contract today.

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Document Sample

Sales Contract Template

Below you can see a sample of the Sales Contract template:

Template Sales Contract

Sales Contract FAQs

Is the Sales Contract Template Free to Use?

Yes, our Sales Contract template is completely free to download and use. You can access it in Word (.doc), PDF, or Google Docs format.

Can I Edit the Template Online?

Absolutely! You can edit and print the Sales Contract directly from our website by clicking 'Create Document.' This feature is particularly useful if you need to draft a contract quickly and don't have a word processor installed.

What Types of Goods or Services Can I Use This Contract For?

Our Sales Contract template is versatile and can be used for a wide range of goods and services, from physical products to digital goods and specialized services.

Does the Template Include a Section for Warranties?

Yes, our Sales Contract template includes a section where you can specify any warranties that come with the goods or services, or state that the goods are sold "as is."

Can I Add Additional Clauses to the Template?

Certainly! The template is designed to be customizable, allowing you to add or remove clauses as needed to fit your specific transaction.

How Do I Handle Amendments to the Contract?

The template includes a section that outlines how amendments can be made. Typically, any changes must be in writing and signed by both parties to be legally enforceable.

Is There a Termination Clause?

Yes, the template includes a termination clause that specifies the conditions under which the contract can be terminated by either party.

What Should I Do After Both Parties Have Signed?

After both parties sign the Sales Contract, each should keep a copy for their records. It's also advisable to store a digital copy in a secure location.

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