What is Sales Agreement Drafting?
A sales agreement is a legal contract between a seller and a buyer to specify how a transaction will go through. It must provide clarity about what is being sold and for how much, as well as what both parties’ roles are during the process.
Since this agreement must formalize both parties’ duties and protect them, it needs to be drafted carefully.
In the rest of this article, we’ll explore the key terms to include in your sales agreement, how to draft it, and why you should consider hiring a qualified lawyer to help you with the contract-writing process.
What are Key Terms in a Sales Agreement?
A sales agreement usually contains core components such as the following:
- Parties. Both parties involved in the transaction will be identified, along with their personal information.
- Goods description. The asset or real estate property being exchanged must be clearly described.
- Payment. The financial terms in the agreement should include the total purchase price, payment methods, and the deposit amount.
- Delivery. Specify when the goods will be delivered or when the real estate property sale will close.
- Warranties and liabilities. These clauses should be included to establish the item’s quality and which party is responsible for damages.
- Dispute resolution. To protect both parties should there be conflict, a dispute-resolution method must be included, such as arbitration.
- Termination. You should provide clarity about how the agreement can be terminated, as well as what the consequences could be.
What Additional Information Should Be Included in a Sales Agreement?
Besides the key terms of a sales agreement, there are other important things to consider when drafting the contract. Here’s a rundown of them.
Consider What Could Go Wrong
Your agreement should include provisions for how to handle things that could go wrong. Depending on the type of agreement, you’ll want to explain how refunds will work, as well as what happens if a property sale doesn’t go through.
Explain the Products Clearly
You need to provide details when describing the asset or property. The more detail, the better, so that there’s no confusion over what is being exchanged. For instance, you could include a note on the item’s quality, quantity, specifications, and more.
Establish Clear Payment Terms
Be thorough when setting down the payment terms, such as payment deadlines, the method by which payments will be made, and what happens with late payments (such as if specific penalties will need to be paid).
Clarify Delivery Details
It’s also important to specify delivery details for both parties to understand the process and what’s expected of them. You could mention shipping timelines, what insurance is required, and other duties.
Protect Parties with an Indemnification Clause
The sales agreement should clarify which party is responsible for any losses or damages. The seller should be protected against liability as a result of the buyer’s misuse or negligence, while the buyer should be protected from seller misrepresentations.
Protect Sensitive Information
If you’re selling digital assets or items that include the exchange of sensitive information, you’ll need a confidentiality clause in your sales agreement to prevent the sharing confidential information with third parties.
Consider Amendments
Should the agreement need to be changed in future, such as if the transaction requires adjustments, you’ll want to know how to approach this. Outline the amendment and modifications process, such as that written consent is required by both parties.
How Does a Lawyer Help You with Sales Agreement Drafting?
Drafting a sales agreement requires careful consideration for the laws, both parties’ interests, and anything that could go wrong. Without a strong legal background and experience in drafting this contract, you might miss important information. That’s why hiring a lawyer can be beneficial.
Here’s a quick summary of what a lawyer will do during the contract-drafting process:
- They’ll make the agreement legally enforceable and valid by complying with all relevant rules and laws.
- They’ll clearly define the sale terms so that there’s no confusion over the price, delivery duties, and more.
- They’ll identify possible legal or financial risks in the future and include provisions to address them now, safeguarding your interests.
- They’ll customize the agreement to your specific deal and the parties’ goals.
- They’ll use clear language that avoids ambiguous or dense legal language, ensuring both parties understand what’s expected of them.
- They’ll protect your confidential information and intellectual property.
- They’ll negotiate any terms with the other party on your behalf, using their skills and experience to draft a mutually-favorable agreement.
- They’ll review your sales agreement if it’s already been drafted. This will give you peace of mind that every term has been checked and is valid.
Where to Find a Lawyer for Sales Agreement Drafting
If you’ve ever had to find a lawyer for an urgent contract drafting, you’ll know it can be challenging at times. Using an online legal platform makes it easy by connecting you with experienced and reputable lawyers.
ContractsCounsel is an example of one of them. As one of the largest online legal marketplaces, it gives you access to a network of lawyers who have been vetted on the platform. You’ll quickly find and hire a lawyer who’s experienced in drafting clear and legally-valid sales agreements.
Here are the steps to follow to request that a lawyer on the platform drafts your sales agreement:
- Go to the ContractsCounsel marketplace.
- Post your project (or request for a lawyer) for free. Include a few details to help you find the most suitable lawyer, such as why you require the sales agreement or the type of transaction.
- Receive multiple bids from lawyers directly on the platform who have the experience to help you.
- Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your sales agreement for a flat fee.
