A sales agreement is needed when selling goods or services. Learn all the details of what goes into a strong agreement.
Buying and selling: It’s an integral part of any business operation, from enterprise-level empires to mom-and-pop shops to side hustles. Behind every business exchange lies a sales agreement contract to keep everyone on the same page, and it’s an important business contract to have up your sleeve as an entrepreneur. Use our comprehensive sales agreement template below that you can refer to anytime you need an agreement.
A sales agreement contract is an official document between a buyer and seller that outlines the terms for goods, services, or property to be sold. It may detail a single transaction or an ongoing sales relationship between two or more parties.
You may also hear it referred to as a sales contract, an agreement to sell, a sale of goods agreement, or — on the buyer’s side — a purchase agreement.
While they may go by similar names, the difference between a bill of sales and a sales agreement lies in the timing. The team drafts a sales agreement contract prior to the sale, while a bill of sale occurs during the transaction.
A bill of sale may act as a receipt for future reference, whereas a sales agreement doesn’t provide proof a sale was actually made — it just outlines the terms of the sale-to-be.
Sales agreements occur any time the legitimate sale of goods, services, or property occurs. Below are just a few examples of times when a sales agreement contract is needed:
As a seller, you need a sales agreement contract to ensure proper liability transfer for whatever goods, services, or property you’re selling. Without one, you may still be held liable for something outside of your knowledge and control. You may also be left hanging with excess inventory if the buyer decides to back out of the agreement at the last minute.
As a buyer, you need a sales agreement to lock in a certain price and the terms of delivery. Without one, you may be left with no inventory if the seller decides to hike up prices at the last minute or if they decide not to sell at all. Without goods to sell, angry customers will choose to shop elsewhere.
Either the buyer or the seller may prepare a sales agreement contract. If you’re a business owner selling goods or services directly to consumers or other businesses, you will typically be the one drafting up the contracts.
You can use Bizee’s sales agreement template to create your contract. Our template will ensure your contract includes all the necessary details, including:
Once you’ve drafted up your sales contract agreement, you may still have questions about what’s next. Here are some additional details:
Yes. Like most contracts, a sales agreement is legally binding. If either the buyer or the seller fails to uphold their end of the agreement as outlined in the contract, the other party is entitled to legal protections.
No. A sales agreement contract does not require notarization, and it is still legally binding without it. However, both parties may choose to include it as an extra layer of protection, as a notary ensures the document is authentic and legitimate. Note that notarization may be required for the final bill of sale, depending on your state’s requirements.
Note a sales agreement itself does not denote a completed sale. The sales agreement becomes an actual sale once the goods or services are delivered and properly paid for based on the terms of the contract. Once a sale is made, the bill of sale is created as proof of transaction.
For more handy templates to use in your business projects, visit our business contract library. Need even more business resources? Our resource library contains dozens of guides, checklists, infographics, and more to take your business to the next level.
