How to Write Out a Contract to Sell a Product
The sale of a product is a good way to generate income in a business, as well as for individuals. To protect yourself legally, it's best to conduct all product sales under a formal sales contract. Regardless of what product you're selling to a buyer, all sales contracts should be drafted to include basic information about the parties involved, pricing and payment, inspection, delivery and dispute resolution, as well as a description of whatever it is you're selling.
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Instructions
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Write out the full names and contact information for all parties involved -- that is, the buyer and seller.
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State the general terms and conditions under which the contract is to apply. For example, reference any regulations the contract must follow to be valid and whether any changes to the contract are permitted.
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Describe the product you are selling. Descriptions may include physical characteristics such as color or size, as well as a numeric count of the units you're selling. They also can include information about the manufacturer, model and serial numbers or factors that add to the product's value.
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Explain how and when the buyer will inspect the product for the sale, if at all. If the product is not to be inspected, indicate you are selling the product "as is" and that you are offering no or limited return or refund options. Detail the return or refund terms if you choose to extend those options.
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Stipulate the price that will apply to the sale, as well as when payment is due. Indicate payment methods you will accept, such as check or money order. It is acceptable to have separate terms for each method of payment. State whether you will charge interest for late payment, at what rate and when it will apply as well.
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Explain how you will transfer the title to the buyer and when -- for example, through Form X, available at the Such-and-Such Sales Office, upon receipt of final payment.
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Detail how you are going to deliver the product to the buyer and what recourse the buyer may take if you do not deliver as agreed after payment -- for example, cancellation of contract and refund. Also indicate whether the buyer has the right to inspect the product following delivery, and that you do not assume any liability for damages incurred by the shipping company of choice.
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Explain how you and the buyer will resolve disputes about the sale, such as by mediation or arbitration.
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Stipulate the effective date of the contract.
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Provide spaces for all parties to sign and date the agreement.
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Tips & Warnings
Keep the language in your contract simple and concise so that your buyer has an easier time understanding the terms. A contract loaded with legal jargon can intimidate a buyer, so use such terms sparingly and, if needed, explain them.
Even if you feel confident with the way your contract is worded, it's a good idea to have a competent, licensed attorney review it for you before you bring it to your buyer.
References
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