How To Write a Contract of Sale

When you own a small business, there is a big possibility that you might be required to write a contract for sale of goods and services. Before hiring out an attorney to draft the contract for you, why not try to write your own. Here’s an easy step-by-step guide to writing a contract of sale.

  • Identify the parties involved in the agreement, whether individuals or business entities. All you have to do is put in the name of the seller and the buyer as well as their mailing addresses. This will be important later on for the mailing of the copies of the contract.
  • Describe the goods being sold and include their quantity and prices. This is very important so the buyer knows what he can expect on the sale. If there are many goods being sold, consider appending an entire exhibit devoted to the products with descriptions and prices. Also, consider appending pictures of the product to the contract. In some cases, when a buyer has a standard sales contract, the seller just ticks off the products being sold to him as means of specifying which products he is buying.
  • Identify methods of payment.  This part is very important to the seller. If the buyer is not paying for items upfront with cash, but buying it on credit or partial credit, the contract of sale must determine the different payment options available to the buyer. Such options should have been discussed beforehand so there would be no surprises for both parties. This also serves a purpose in the accounting of finances of both parties.
  • Specify how the goods are to be delivered. If goods cannot be hand carried out of the store of the seller, the contract must specify how the goods are to be delivered to the buyer. It should also specify when the delivery will take place.
  • Write down any disclaimers or warranties. Most products come with warranty protection. This should be stated in the contract so that the buyer will know how he can return defective goods or have items serviced. This is part of what popularly called as consumer rights.
  • State refund and exchange policies. The contract should clearly state whether the seller accepts product returns for refund or exchange. In the event that returns are honoured, the contract should specify the period allotted for the return of the return of the product. The requirements for refund, e.g. official receipt, should also be stated in this portion of the contract.

A contract of sale should be a simple, straightforward document and free of technical terms or jargons. Keep this in mind when writing your own sales contract. If you are concerned about the formatting of the sales contract that you are writing, you can find numerous samples of sales contract online at and FindLaw. You can also have an attorney take a look at the sales contract you have written to ensure that is in compliance with the law.


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