{"id":453,"date":"2020-12-23T18:01:47","date_gmt":"2020-12-23T12:31:47","guid":{"rendered":"https:\/\/blogrevv.revv.so\/?p=453"},"modified":"2022-11-11T12:48:59","modified_gmt":"2022-11-11T07:18:59","slug":"sales-contracts-types-and-parts-of-a-contract","status":"publish","type":"post","link":"https:\/\/www.revv.so\/blog\/sales-contracts-types-and-parts-of-a-contract\/","title":{"rendered":"Sales Contracts Guide &#8211; Contract Types and Parts of a Contract"},"content":{"rendered":"\n<p>Dear Sales Champ,<\/p>\n\n\n\n<p>Kudos to you!<\/p>\n\n\n\n<p>You have landed a big-ticket customer. Your months of toil, rounds of counteroffers, calls, presentations, and unending discussions have finally paid off.&nbsp;<\/p>\n\n\n\n<p>The next step is to sign a sales contract and brace yourself for unforeseen circumstances.&nbsp;<\/p>\n\n\n\n<p>A sales contract is a binding agreement to lock the intent of the parties and ensure your business is protected from future disputes. It is also a bilateral contract where each party agrees to honor their side of duty.<\/p>\n\n\n\n<p>Types of contracts and parts of a contract can differ to represent the right services and goods exchanged between buyers and sellers.<\/p>\n\n\n\n<p>But most businesses struggle to create watertight sales contracts.&nbsp;<\/p>\n\n\n\n<p>Well! We\u2019ve got your back.<\/p>\n\n\n\n<p>Read on and grasp everything about sales contracts.<\/p>\n\n\n\n<h2><strong>What is a sales contract?<\/strong><\/h2>\n\n\n\n<p>A sales contract embarks the beginning of a new business relationship. It happens when both parties come to a meeting of the minds to sign a legally binding contract.<\/p>\n\n\n\n<p>It is an enforceable contract that documents an exchange of goods or services, the terms of the exchange, and the parties involved.<\/p>\n\n\n\n<h2><strong>Why is a sales contract important?<\/strong><\/h2>\n\n\n\n<ol><li><strong>Increase transparency <\/strong>&#8211; It doesn\u2019t leave any scope of misrepresentation and sets the right expectations. Being a valid contract, it acts as proof of an offer and acceptance between the parties and makes the parties stay true to the agreed parts of a contract.<\/li><li><strong>Enforceable contract <\/strong>&#8211; It compels both parties to enter into mutuality of obligation due to a signed and legally bound written contract.&nbsp;<\/li><li><strong>Legally binding <\/strong>&#8211; Being a legal contract, it protects both parties under the contract law in case of disagreements. Read here to know <a href=\"https:\/\/www.revv.so\/blog\/how-to-make-a-contract-legal-with-the-right-elements\/\" target=\"_blank\" rel=\"noreferrer noopener\">how to make a contract legal with the right elements<\/a>.<\/li><\/ol>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><meta charset=\"utf-8\"><strong>Automate your sales contract workflows end-to-end<\/strong><br><strong><a href=\"https:\/\/www.revv.so\/signup\/?plan=plan-c-monthly-trial&amp;button=signup-from-navbar&amp;utm_source=revv_blog&amp;utm_medium=blog&amp;utm_campaign=Sales+Contracts+Guide\" target=\"_blank\" rel=\"noreferrer noopener\">Sign up and try Revv today<\/a>!&nbsp;<\/strong>No Credit Card Required<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><strong>What constitutes a sales contract? &#8211; Elements of a contract<\/strong><\/h2>\n\n\n\n<p>Here are the essential parts of a contract:<\/p>\n\n\n\n<ul><li>Name, address, and contact information of the parties<\/li><li>Description of goods or services<\/li><li>Prices and payment terms<\/li><li>The delivery method of goods\/services<\/li><li>Warranties and guarantees from the seller, including the disclaimer to be agreed by both parties<\/li><li>Contingencies specifying what is to be done in certain situations, also make sales contracts voidable<\/li><li>Inspection period to check the goods after delivery and reject any nonconforming goods<\/li><li>Confidentiality term to limit the distribution of sensitive information<\/li><li>Measures to be taken in case of breach of contract<\/li><li>Governing laws<\/li><\/ul>\n\n\n\n<p>Read the blog to know more about <a href=\"https:\/\/www.revv.so\/blog\/contract-management-software-an-ultimate-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">contract management software.<\/a><\/p>\n\n\n\n<h2><strong>When do you need it? &#8211; The legality of sales contracts<\/strong><\/h2>\n\n\n\n<p>Whether you are a small or big business, sales contracts are a must for swift transactions between the parties involved.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/law.jrank.org\/pages\/9986\/Sales-Law-Contract-Formation.html\" target=\"_blank\" rel=\"noreferrer noopener\">The Uniform Commercial Code\u2019s (UCC) statute of frauds<\/a> requires that those in the United States create a written contract for any interactions worth more than $500.&nbsp;<\/p>\n\n\n\n<p>A statute of frauds is a state law that generally requires certain contracts to be in writing and signed by the parties for them to be enforceable.&nbsp;As per the UCC, a written sales contract should define the parties involved, the subject matter to be sold, and any material or particular terms or conditions.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><meta charset=\"utf-8\"><strong>Draft, manage, track, eSign, and automate your sales contracts<\/strong><br><a href=\"https:\/\/www.revv.so\/signup\/?plan=plan-c-monthly-trial&amp;button=signup-from-navbar&amp;utm_source=revv_blog&amp;utm_medium=blog&amp;utm_campaign=Sales+Contracts+Guide\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Try Revv today!<\/strong><\/a> No Credit Card Required<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><strong>7 essential types of contracts in sales<\/strong><\/h2>\n\n\n\n<h4>1. <strong>General Sales Contract Agreement&nbsp;<\/strong><\/h4>\n\n\n\n<p>It is a general-purpose written contract between a seller and a buyer. Most sales agreements are a modified version of this template. It comprises all the elementary information \u2013 terms of the contract, delivery details, parties involved, and more.<\/p>\n\n\n\n<h4>2. <strong>Conditional Sales Agreement<\/strong><\/h4>\n\n\n\n<p>Here, a buyer takes possession of a good or an asset but doesn\u2019t own exclusive rights to them. The seller retains the rights until the price is paid in full. For example, in real estate, a buyer takes possession of a property but doesn\u2019t own it until he\/she has paid the total price.<\/p>\n\n\n\n<h4>3. <strong>Agreement for Sale<\/strong><\/h4>\n\n\n\n<p>These enforceable business contracts play a vital role in real-estate deals and act as an agreement to sell a property in the future. It specifies the terms and conditions of a property\u2019s sale by an offeror (seller) to a promisor (buyer).<\/p>\n\n\n\n<h4>4. <strong>Contract of Sale of Business<\/strong><\/h4>\n\n\n\n<p>Also called a \u2018sale of a business\u2019 or \u2018business transfer agreement\u2019, it is a bilateral contract between the parties when they want to buy\/sell a business. It outlines the terms and conditions of a business sale.<\/p>\n\n\n\n<h4>5. <strong>Sales Contract Addendum<\/strong><\/h4>\n\n\n\n<p>The word \u2018addendum\u2019 means something that has been added to a book, speech, or document.<\/p>\n\n\n\n<p>A sales contract addendum serves as a supplementary agreement\/document attached to an existing contract. It allows businesses to add more information without changing the original terms. It is a convenient way to expand the terms of an agreement in the same document instead of producing a new one.&nbsp;<\/p>\n\n\n\n<p>If there is any alteration in the original one without a separate document, it is an amendment and not an addendum.<\/p>\n\n\n\n<h4>6. <strong>International Sales Contracts<\/strong><\/h4>\n\n\n\n<p>It is a binding contract between a buyer and a seller that identifies the parties in the transaction, the goods or services being sold, the terms and conditions of the sale, and the payment conditions. It is written to govern trade relations between companies in different countries. It falls under the <a href=\"https:\/\/uncitral.un.org\/en\/texts\/salegoods\/conventions\/sale_of_goods\/cisg\" target=\"_blank\" rel=\"noreferrer noopener\">United Nations Convention on Contracts for the International Sale of Goods (CISG)<\/a>.<\/p>\n\n\n\n<h4>7. <strong>Automobile Sales Contracts<\/strong><\/h4>\n\n\n\n<p>This business contract is a legal document used to conclude the sale of a used automobile after mutual assent between the parties. It allows independent purchasers\/sellers or companies to buy and sell used vehicles and specify all the terms and negotiations in the document.&nbsp;<\/p>\n\n\n\n<p>The essential elements of this binding agreement are \u2013 delivery terms, negotiated price, warranties by the seller, and buyer\u2019s commitment like payment terms.<\/p>\n\n\n\n<p>Contracts are also divided into unilateral and bilateral contracts. Read the blog to know more about the <a href=\"https:\/\/www.revv.so\/blog\/understanding-unilateral-and-bilateral-contracts\/\" target=\"_blank\" rel=\"noreferrer noopener\">differences between unilateral and bilateral contracts<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><meta charset=\"utf-8\"><strong>Optimize your company\u2019s sales contract processes and close them faster<\/strong><br><a href=\"https:\/\/www.revv.so\/contract-management-software.html?utm_source=revv_blog&amp;utm_medium=blog&amp;utm_campaign=Sales+Contracts+Guide+%E2%80%93+Contract+Types+and+Parts+of+a+Contract\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Try Revv<\/strong><\/a><strong>\u00a0\u2013 The best contract management software<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><strong>Amazing benefits of creating sales\/business contracts in Revv<\/strong><\/h2>\n\n\n\n<ul><li>Create documents from Revv\u2019s vetted and ready-to-use <a href=\"https:\/\/www.revv.so\/templates?utm_source=revv_blog&amp;utm_medium=blog&amp;utm_campaign=Sales+Contracts+Guide+%E2%80%93+Contract+Types+and+Parts+of+a+Contract\" target=\"_blank\" rel=\"noreferrer noopener\">1000+ professional document templates<\/a>. Here is a list of the <a href=\"https:\/\/www.revv.so\/blog\/best-contract-templates-for-small-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">best contract templates that small businesses need<\/a><\/li><li>Design stunning contracts with the feature-rich document editor. With a simple drag and drop you can add text and images, insert quote tables, connect your Google Sheets, integrate payment systems, and more, without writing any code<\/li><li>Collaborate with users within the document through <strong>notes<\/strong>, <strong>comments<\/strong>, and tag them with the <strong>@mention<\/strong> feature<\/li><li><a href=\"https:\/\/www.revv.so\/blog\/how-to-create-an-electronic-signature-in-documents\/\" target=\"_blank\" rel=\"noreferrer noopener\">Send documents for eSignatures<\/a> with just a few clicks<\/li><li><a href=\"https:\/\/medium.com\/revv-so\/real-time-recipient-activity-monitoring-with-revvsales-3f58daf888a0\" target=\"_blank\" rel=\"noreferrer noopener\">Track activity on documents with real-time analytics<\/a> &#8211; who opened it, signed it, etc.<\/li><li>Receive email alerts on document\u2019s status change<\/li><li>Get legally binding audit trails for all your eSigned documents and avoid disputes<\/li><li>Customers can access the sales contracts from any device and sign them from anywhere, at anytime<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Want to take the hard work out of drafting contracts?<br>Try <a href=\"https:\/\/www.revv.so\/templates\/contracts\" target=\"_blank\" rel=\"noreferrer noopener\">Revv\u2019s contract templates<\/a><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul><li>Multiple eSigning options for the signers to personalize their signature. They can <strong>draw signatures<\/strong>, <strong>scan and upload signatures<\/strong>, choose from <strong>pre-formatted text styles<\/strong>, and even connect their crypto-wallet <a href=\"https:\/\/www.revv.so\/sign-documents-with-metamask-wallet.html\" target=\"_blank\" rel=\"noreferrer noopener\">MetaMask<\/a> to complete the signing process<\/li><li>Organize your documents in a central repository&nbsp;<\/li><li><a href=\"https:\/\/www.revv.so\/blog\/how-to-automate-document-approval-workflow-process\/\" target=\"_blank\" rel=\"noreferrer noopener\">Create workflows and automate internal approvals<\/a> of sales contracts<\/li><li>Collect instant, online <a href=\"https:\/\/www.revv.so\/docs\/stripe\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"broken_link\">payments by integrating with Stripe<\/a> within your contracts<\/li><li><a href=\"https:\/\/zapier.com\/apps\/revv-documents\/integrations\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"broken_link\">Seamless integration with other business applications<\/a> like Zoho, Google Drive, Zapier, Slack, and many more<\/li><li><a href=\"https:\/\/medium.com\/revv-so\/revv-ai-the-future-of-document-reviewing-bf4cf9a6a355\" target=\"_blank\" rel=\"noreferrer noopener\">Analyze documents with artificial intelligence using Revv\u2019s Metalens feature<\/a> and extract data and intent from business documents to scale up business processes<\/li><\/ul>\n\n\n\n<p>Choosing a contract management software for your business is an uphill task. Read this blog and <a href=\"https:\/\/www.revv.so\/blog\/sales\/choose-right-clm-contract-lifecycle-management-tool\/\" target=\"_blank\" rel=\"noreferrer noopener\">discover the factors to consider while choosing a contract management software<\/a>.<\/p>\n\n\n\n<h2><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Many things can go sideways in a business. An oral agreement in such cases can leave you stranded in the middle of nowhere.<\/p>\n\n\n\n<p>It becomes of utmost importance to bring in a legality angle. Safeguard your business with irrefutable sales contracts and lucidly written parts of a contract.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Revv\u2019s advanced features help to create the best <a href=\"https:\/\/www.revv.so\/blog\/digital-contracts\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital sales contracts<\/a> within minutes.<br><br><a href=\"https:\/\/www.revv.so\/signup\/?plan=plan-c-monthly-trial&amp;button=signup-from-navbar&amp;utm_source=revv_blog&amp;utm_medium=blog&amp;utm_campaign=Sales+Contracts+Guide+%E2%80%93+Contract+Types+and+Parts+of+a+Contract\" target=\"_blank\" rel=\"noreferrer noopener\">Sign up for free<\/a> and try it yourself!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Follow this blog and take a deep dive into the world of sales contracts. What is a sales contract, its types, and parts of a contract &#8211; everything you need to know about sales contracts.<\/p>\n","protected":false},"author":3,"featured_media":456,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales Contracts, Types, and Parts of a Contract<\/title>\n<meta name=\"description\" content=\"Learn what to include in the parts of a contract and how to create solid and irrefutable sales contracts - A complete guide\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.revv.so\/blog\/sales-contracts-types-and-parts-of-a-contract\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sales Contracts, Types, and Parts of a Contract\" \/>\n<meta property=\"og:description\" content=\"Learn what to include in the parts of a contract and how to create solid and irrefutable sales contracts - 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