Sales Contract: 6 Things You Need To Include

What Is A Sales Contract?

A sales contract is a document between a buyer and a seller when a transfer of goods, property, or service has to be made in exchange for payment between the two parties. The payment is either paid upfront or in installments. The sales contract contains all the details of the sale and must be kept safely as a record and for legal purposes.

A sales contract helps guarantee that the agreement will be carried out as agreed upon by both parties in which the interests of both parties are protected.

What to Include In a Sales Contract?

The following elements must be included in any sales contract:

1. The Details of Both Parties

Names, contact numbers and addresses, and other identification details of both the parties involved.

2. Description of the Goods or Service Involved

A detailed description of the goods or services must be mentioned in the contract, including:

  • • Type
  • • Size
  • • Weight
  • • Color
  • • Quantity
  • • Model number

In the case of a sales service, the service details must be clearly mentioned, for instance, in the case of a website built or publishing a book. The number of pages, photographs, and copies must all be mentioned.

3. Payment Terms and Conditions

Once a payment plan has been finalized and agreed upon by both parties, it must clearly be mentioned in the sales contract. This includes when the payment is due and how it is being paid in full or in installments. It also includes the mode of payment such as cash or credit card, or bank transfer.

4. Delivery

The expected delivery date should be mentioned here, along with the mode of delivery and any applicable delivery charges.

5. Inspection and Warranties

Warranties must clearly be mentioned in the sales contract, and their details must be provided in an additional document. An express warranty is a written contract guaranteeing that the products are good quality, whereas an implied warranty is an unwritten guarantee that the goods will meet quality standards.

An inspection period is a certain amount of time provided to the buyer to assess the goods to meet their expectations. By including an inspection time, the buyer is protected from the customers wanting to return the goods at a much later and unreasonable time.

6. Breach of Contract Conditions

If there is a transfer of sensitive information involved that either party wants to maintain privacy, a confidentiality agreement must be drawn.

There must also be details mentioned regarding what happens if either party breaches the terms of the contract. What would cause termination of the contract, and how the other party can recover their losses in case one party breaches the sales contract.


When preparing to make a sale, always remember to have an agreement in writing. The sales contract must be checked and rechecked many times to ensure you haven’t missed anything. Even better would be to hire one of our experts to help make sure you include all essential points. EJD Law Group is available to help with all your business needs. Click here to contact them today.