In business, as between individuals, it is dangerous to conclude an agreement on the simple basis of seller-buyer trust, especially when it comes to « money ». Of course, money is not everything, but it is still essential to protect yourself and to put agreements on paper. A sales contract thus makes it possible to be formal and concrete at the level of the law in the event of a dispute. It is an excellent way to define an agreement between two or more parties.
A sales contract, do you know what it is ?
First of all, it is important to know that the sales contract and the commercial contract are the same thing. It’s just that the first one is a simple contract while the last one contains more complex conditions such as a guarantee, a contract renewal date or a maturity date.
A sales contract can be seen as a synallagmatic act highlighting the action of selling in the eyes of the law. In this contract, the seller must deliver the object of the sale to the buyer and make it the owner in exchange for which he receives a remuneration that the buyer undertakes to give him. Basically, it is an agreement by which a property is transferred in exchange for a payment.
To be even more down-to-earth, a contract of sale is the handwritten and concrete materialization of an agreement between buyer and seller by which an asset, whether tangible or intangible, changes ownership in exchange for payment.
Certainly, it is mainly the buyer who needs the contract of sale, in order to ensure that the sale is legal and to prove that he is the new owner of the property. However, this type of contract is also useful to the seller who can then attach his wishes, such as conditions of sale for example. Once everyone agrees, the signing of the sales contract expresses their consent in the deal.
The general content of a sales contract
As you can probably already guess, a sales contract must include a minimum of information to be valid, information that will concern both the seller and the buyer and the object of the sale :
- The name of the seller : of course, to know who is selling the product.
- The reference to the identity of the seller : if the seller is a private individual, he must be over 21 years old for the contract to be legal. He must therefore provide an identity document justifying this (national identity card, passport, permit, etc.). If the seller is a company, it will be necessary to mention its name, address and administrative information in addition to its contacts (telephone, email, etc.).
- The name of the buyer : as above, it is necessary to know to whom the goods will be delivered. Here too, the buyer may be an individual or a company.
- The reference to the identity of the buyer : same principle as that of the seller, the buyer must be of legal age in order for the contract to be legally valid. In the same way, it will be necessary to provide an identity document.
- The purpose of the sale : indication of the property, description of the product with, if necessary, its name, quantity, etc. In short, all the details concerning him and allowing him to be clearly identified.
- The price of the goods : the total amount to be paid by the buyer or customer with, in the case of several goods, the unit price.
- Delivery terms : especially useful in the case of companies, information on the delivery method must also be included in the sales contract. How, when and where will the property be delivered ?
- The place and date of the contract : dating the sales contract allows to situate it in time, very useful in case of dispute.
- Signatures : as proof that both parties are in agreement on the sale and that there is a meeting of wills, both buyer and seller must sign the sales contract. If the seller or buyer is a company, it will be up to its legal representative to sign.
A brief overview of the contract
As you will probably see, I have added some details such as the address of the customer (buyer) and the payment method. I think it’s safer. And personally, I advise you to put the seller’s address as well, especially if it is a private individual. Be careful !
In summary :
- a contract of sale is the meeting of the will of a seller and a buyer who agree on the delivery of an item (delivery which will determine the effective transfer of ownership of the item) against payment.
- for it to be legally valid, both parties must have the capacity to contract (civil majority for individuals). That is the first condition. The second is that it must be explicitly stated that a person sells a particular asset, material or otherwise, to another person in return for a payment.
- then comes the signature of each party to signify the consent of both parties to enter into the contract.
Note : Keep in mind that this sample sales contract is only a suggestion that gives you an idea of what this document should look like. Its use is free, but we cannot be held responsible for any damage related to its use.