Tuesday, September 25, 2012

Mistakes To Avoid In A Sales Agreement

By Casandra Newton

A sales agreement is a legal contract for conduction of a business activity between two parties normally, the buyer and the seller. This contract is known to have legal obligations on it. Once agreed upon, it can be enforceable within a court of law for redressing purposes. This necessitates the need to be extremely cautious when drafting one. The most notable thing is the concurrence being involved within the two parties.

This document is highly informative since it gives the buyer a rough picture on how the goods are before having a look at them. During the drafting process, a detailed description of the goods being sold is given. This is the appearance and the quantity. This makes the buyer know the amount he or she is dealing with even before he or she has a look at them. In case of bulkiness, such a description is essential rather than having to move them to location of agreement.

Omission or wrong calculation of the costs is a mistake to avoid too. These costs are the prices of the goods for trade. A miscalculation could result into one party benefiting and the other suffering on a simple mistake that could cost the whole contract to stall. Here, maximum accuracy is emphasized before putting pen to paper upon completion.

There has to be room for any modification plans in case they arise in the future once a sale has been made. In this case, unwanted issues may arise in the future when the agreement is due. This may result into suspension or termination of a contract. The solution to this has to be a written agreement which is signed by these two parties.

It has to state the governing laws that are suitable for execution. This facilitates the statement of relevant jurisdiction of the government where the contract is agreed upon and executed. This is usually the concluding statement of the whole accord. It states the location where the contract was signed and where the delivery will be made when the date of conclusion comes to an end. Its validity is modified with lines of signatures from both parties.

Clarity has to be maintained at all times when it comes to delivering the products to a final buyer. These terms must be clearly outlined in order for the party with this mandate to conduct it well when the time comes. Assumptions are the greatest mistakes to make. Every delivery detail must be in writing during the drafting process.

This contract clearly outlines the need for liability and the party that is responsible for the occurrence of theft or damages when the goods are on transit. This plan gives much weight in ensuring that careful planning and delivery process is carried out. These amounts to elimination of losses when during the delivery process and therefore, keep the contract alive.

Omission of liquidated damages in a sales agreement is a mistake one would want to avoid. A time, the other may ignore the contract while it is still in effect leading to the incurring of the losses to the other party. With legal administration through the clause of liquidated damages, such incidences are avoided.

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Mistakes To Avoid In A Sales Agreement

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