Jumat, 21 September 2012

Composition Of A Sales Agreement

By Casandra Newton

A sales agreement is a contract over which there is transfer of goods, property or services from the seller to the buyer upon which an agreed amount of money is paid. This contract is legal and can be enforced in a court of law. It binds these two parties and any form of violation of it may result into a legal tussle. It is composed of several clauses with regards to the whole process and the two parties involved.

The description of goods is an important thing never to omit. When this clause is not inserted in the contract, then the emergence of a dispute later on may be hard to prove. In addition, the right quantity and quality needs quotation with regards to the transaction. In case of a difference in this, it will be impossible for the offended party to prove and claim for redress within a court of law.

It enhances the agreement in terms of prices of the goods. For proper planning purposes, all costs are detailed down for sharing between the two parties. This tool gives them adequate time and knows how to plan for any arising cost issues that may come up unexpectedly. It also addresses a clear estimation on what to incur once the negotiation process is over.

There has to be room for any modification plans in case they arise in the future once a sale has been made. In this case, unwanted issues may arise in the future when the agreement is due. This may result into suspension or termination of a contract. The solution to this has to be a written agreement which is signed by these two parties.

Another importance of this contract is that of setting clear solution path for redress when jurisdiction matters arise. With an outlined government for jurisdiction, it eases the need to solve the case which could arise. It also gives clear guidelines on the physical location where the contract is to be executed. This need assists to avoid unnecessary confusion and conflicting of interest between the two parties.

Clarity has to be maintained at all times when it comes to delivering the products to a final buyer. These terms must be clearly outlined in order for the party with this mandate to conduct it well when the time comes. Assumptions are the greatest mistakes to make. Every delivery detail must be in writing during the drafting process.

Covering up for the losses in case they occur is a crucial inclusion. While on transit, goods may be stolen or be damaged. Such circumstances are unavoidable. Clearly stated responsibility for this will make the party responsible to put in more caution and measures when carrying the goods to the premises of the buyer.

Omission of liquidated damages in a sales agreement is a mistake one would want to avoid. A time, the other may ignore the contract while it is still in effect leading to the incurring of the losses to the other party. With legal administration through the clause of liquidated damages, such incidences are avoided.

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