When you own a business, it behooves you to do everything possible to protect yourself. That extends to sales contracts, which ensure you get paid for your goods. If your small business sells a product rather than provides a service, be sure you have a well-written sales contract with terms that are favorable to you. A sales contract spells out the price, terms and conditions and other aspects of the sale so there are no questions later. Read on to learn more about what should be in your product sales agreement in Austin, TX.
What your sales contract should include
There’s no standard sales contract in any industry, but a good one will cover all of these terms (and more, depending on your company’s specific needs). We suggest having a pre-prepared contract drawn up so you can pull it out whenever you need to make a sale:
- Price and taxes: Naturally, the first thing you’ll want to include are the prices for your product. You can either put them in your contract ahead of time (if you only sell one type of product) or add them into the document as necessary. Make sure to add sales taxes, too—most business owners prefer to pass those on to the buyer.
- Price adjustments: If your product fluctuates in value, you should consider how you’ll account for that in the product sales agreement in Austin, TX. You might prefer to leave the price blank, or update your contract periodically to account for the change in value.
- Payment terms: Next, include how you’ll accept payment. If you plan to offer financing, be clear about the terms and time period, as well as what happens when a customer fails to pay. You may wish to add a grace period, late fees or other reasonable penalties for missed payments. This is when having the help of an attorney is particularly helpful. They can counsel you on whether your terms are reasonable and will hold up under legal scrutiny.
- Warranties: How long to you plan to guarantee your products, and under what conditions? For example, many companies have clauses stating that if the buyer changes the product on their own, the warranty no longer applies—for example, adding aftermarket parts to a car. If you’re in a competitive market, consider offering a better warranty than other sellers typically include.
- Disclaimers: Next, you’ll want to discuss what the sales contract doesn’t offer. Disclaimers allow you to limit your warranties (state that all warranties listed explicitly in the contract are the only ones honored, for example), terms and conditions.
- Limiting liability: Finally, you need to limit your liability. Many sales contracts state that the buyer can only recover the purchase price, and the business is not responsible for damage, lost profits and other negative consequences.
Working with a skilled contract attorney can help you tailor sales contracts for your business in Austin, TX. Burk Law Firm, P.C. can help. Call us today to get started drafting your new sales agreement.