How to Make a Sales Contract

by Contributing Writer; Updated September 26, 2017
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The sales contract is one of the most important documents a business person can make, because it is the legally-binding agreement between your organization and another party. You want to cater your sales contract to meet your needs and to make sure your customers understand their obligations. You can make a sales contract by determining your needs and putting them down on paper.

Items you will need

  • Paper
  • Pen
Step 1

Print the words "Sales Contract" or "Contract" at the top of the page in bold letters. This leaves no doubt that what is to follow is a legally-binding contract between two parties.

Step 2

Outline in the first paragraph of your sales contract the names of the two parties, indicating that you are the seller of the product or service and that the other party is the buyer. Write the date of the sales contract in this section, so it is clear as to when the contract was created. State the addresses of both you and of the buyer in the agreement, so it is clear whom the contract is between.

Step 3

Describe the product or service that you will supply to the buyer in the next paragraph. State the date or dates upon which the product or service will be delivered.

Step 4

Write the terms of payment of the buyer in the next paragraph. State the total cost of the product or service and whether payments will be made in one lump sum or over a certain number of months. Outline each date that a payment is to be made and the forms of payment that you will accept from the buyer.

Step 5

Explain any penalties for non-payment of the goods or services or non-delivery of the goods or services in the next paragraph. State any late fees, when late fees are applied to the total amount due and when the late fees are expected to be paid. State any qualifications for the buyer to reject the goods or services, such as if the buyer is not satisfied; outline the date by which the buyer must state that he is unhappy with the product or service to return or reject the service, if applicable.

Step 6

Indicate the date on which the agreement is signed at the bottom of the form, writing, "Agreed to on this date" and print the date. Have both parties sign the agreement at the bottom of the form.

Photo Credits

  • signing a contract image by William Berry from Fotolia.com