Question

Describe a service or sales contract that meets all the required elements of a valid, enforceable contract. Explain why the contract is complete.

Answer 1

A sales contract is an agreement between a seller and a buyer which includes the delivery and sales of goods, various securities, and many other personal properties. it is also known as sales or goods agreement or purchase agreement. In addition to buyer and seller, their witnesses will become legally binding of the party at the time of signing a contract. In the United States of America, these contracts are governed by the Uniform Commercial Code.

Important elements of a sales contract:

When writing or reviewing a sales agreement, it is important to know what things must be included and which terms are most important to be included in a sales contract.

Having the knowledge of these things and terms will help you to protect your rights in the future and save you from problems in transactions in sales transactions. A sales contract contains elements such as the seller, the buyer, the goods and all other important terms.

Important elements of sales contract :

(1) Description of Goods:

It is very important to mention a detailed and vivid description of goods in the sales contract. Otherwise, later you can get into trouble because of the errors in the description of goods. Make sure that your description should be of exact goods that a buyer wants to buy in the future. you should include details such as Model number, type, color, weight, and size.

Mentioning all these details accurately will ensure that the seller will deliver you correct product. In the failure of getting the correct goods, you can take legal actions on the basis of the sales contract. However, all other problems with the agreement can be neglected as long as the buyer is getting the products that he has asked .

(2) Delivery instruction:

late delivery, delivery at wrong address or careless delivery can cause problems and can disrupt the production or sales process. therefore, it is very important to mention the correct date, time and place of delivery of goods clearly. In addition to this, sales contract should also mention who will be responsible for the loss of goods or any other mishappening.

(3) Inspection period:

“inspection period” is one section that most buyers forget to include in a sales contract. This period will give time to the buyer to inspect the goods deliver to him and reject any different goods. However, the inspection time is different for different types of goods. For example, goods which have a short shelf life (perishable goods) are required to accept or reject immediately.

However, expensive goods such as machines a buyer requires a little longer time (for a week or a month) to inspect goods and take the decision of accepting or rejecting goods.

(4) Warranties and guarantees from the seller:

It is common to neglect the warranties set by the seller for the goods. However, neglecting warranties can be risky as no one can predict how a thing will come out in the future. besides this, there is no standard format for warranties on goods and it varies from industry to industry and company to company.

(5) Payment details:

This is the most important part after the description of goods in a sales contract. Mentioning the total price of goods is important. However, it is also important to mention all other payment details to avoid any type of confusion in the future. the payment details should include whether the payment will be made in installments or single transaction, will buyer have specific criteria to get paid.

In addition to this, in case if the buyer is not paying the right way then it is wise to include a promising note or have a separate promising note to mention payment terms in more detail. In the note, you can also mention whether the interest will be incurred by the seller or not for the delay in the payment.

So we can say that this contract is complete as it is meeting all the requirements which a valid contract needed i.e, offer , acceptance, consideration, capacity, lawful purpose.