How to Write a Short Sale Contract

Imagine a frustrated customer rolling a heater into your store. It's the type with coiling burners in the base and a screen on the face. You notice that the screen has a dark brown, yellow, and black mess on it. Something smelled like food. The customer told you that it broke after he tried to grill food on it. You refuse to give him a replacement due to his neglecting the original product. Some customers would try to find a loophole and call their lawyer; a good sales contract will protect you from this.

Difficulty: Moderately Challenging

Instructions

1. Start your short sales contract by pointing out that you're making a sale, and that the person is buying your product or service. Make sure that this transaction is being listed under the terms of the sales contract. Spell out the risks that you're willing to take; for example, computer stores would talk about free servicing in case the newly purchased computer breaks down in the next few days. Know that risks include what the buyer is expected to take; for example, requiring to submit payment if they keep the merchandise beyond a 30 day free trial period.

2. Know that your sales contract must also list the price that your buyer is going to pay; this includes extra fees not mentioned on the merchandise display. List how this money will be paid back; whether it's through financing, credit/debit payment, or cash. Let the buyer know how many days they have to return it for a full refund. Know that if you leave this out of your contract, your sales contract is null and void.

3. Include a section in the sales contract detailing delivery plans. Know that the Uniform Commercial Code, Article 2, requires delivery to take place in one shipment; but both the seller and buyer can agree on delivery in increments (see Resources below). Designate a place where you'll deliver the goods to the buyer; this should either be at a business establishment, or at the buyer's residence.

4. Include warranties in the sales contract; the buyer gets entitlement to the product, and the seller gets warranty against violations against the seller rights. Know that this guarantees the buyer that the product that you're selling will only belong to the buyer (see Warning below). Provide a statement or two that codifies what you advertised, in selling the product, into this sales contract.

5. Include a signature section that requires the buyer and seller to print and sign their names. Provide a section on the sales contract for a signature witness to sign. Once you're done writing the letter, review Article 2 of the Uniform Commercial Code, (see Resources below). Read Part 3 of Article 2, which deals with building a sales contract.

Tips & Warnings

• When you write your sales contract, include provisions protecting the seller from the customer's abuse of the product or service. Make sure that the sales contract is consistent with Article 2, and pay attention to sections describing what will make a sales contract null and void.
• It's illegal to sell stolen goods. Even if the buyer buys goods they thought weren't stolen, he still has to surrender them if the actual owner claims, and proves, that they were stolen. A short sales contract should guarantee the buyer that they're purchasing a product that's only going to belong to them.

Resources

• Uniform Commercial Code--Article 2, Sales.
• Write a contract that doesn't need court involvement.