Sales contract is a legal document between seller and buyer which defines terms and conditions for both parties. Sales contract deals with sale of different products as property, power, technology, software, business and any other manufactured goods or under process product etc. It takes account of rights of both parties along with specified terms for dealing as when project will start, at which date delivery will be made, what will be the mode of delivery and payment, according to law. The sales contract is the key document in buying the company assets or stock of a corporation. You need to analyze the document in minute detail to assure it sketch outs the terms you have approved to. It is in this contract that you should define everything that you intend to purchase of the business and its assets, customer lists, intellectual property and goodwill.
Also, I have tried my best o post as many sections as I can. So please add/remove as per your situation. Here is preview of this Sale Contract,
If you don’t have a lawyer to help you outline the terms of the sale, you should at least have one appraisal the agreement prior to sign it. These important and basic items should be addressed in this important document to enhance its quality.
- Names of seller, buyer, and business or product
- Addresses of both buyer and seller
- Agreement should be signed by at least two reliable witness with their full addresses
- Background information
- Possessions being sold along with location
- Purchase price and allotment of belongings
- Modes of payment should clearly be defined
- Treaty not to compete
- Any modifications to be made
- Terms of the agreement and payment terms
- List of inventory included in the sale
- Acquiescence with the Bulk Sales laws of the state
- Any illustration and assurances of the vendor
- Any illustration and assurances of the purchaser
- Determination as to the access to any industry information
- Determination as to the running of the business prior to closing
- Potential of having the seller prolong as a counselor
- Fees, including dealer’s fees
- Date of closing
In case of property sale buyer should get all information vigilantly and consult lawyer to avoid any mistakes, although there is possibility of errors and omissions in agreements by any of the persons, seller, and purchaser or dealing agent. Necessary information in this regard includes the followings.
- Does it have a separate title or joint one?
- Obtain a copy of property title
- Ensure that deal is being in process with owner o property or his duly sanctioned representative; any other person will not be authorized to make a legal commitment about property.
- Confirm the ownership of owner evidently in case title of property is not available; also view documentary proof of previous ownership if present owner is second or third hand owner.
- Make it sure that property is not pledged with any loaning authority. For this purpose bank statement can be acquired as proof or redemption statement. Clearance of utility deposits should also be getting confirmed before finalizing a sale contract.
Please download this Sales Contract template from the link below,