Confidentiality: to your sales contract is a good idea if your product or service includes the transfer of sensitive information.
Breach of contract: If either party fails to fulfill its side of the agreement, this section outlines the potential consequences. For example, a contract may state that if the buyer fails to make a payment on time, they must pay a late fee along with the missed payment.
Best practices for drafting a sales contract
Here are some best practices for putting together a solid, binding sales contract based on my experience:
1. Use clear, simple language — and consult with a lawyer for guidance
Write contracts in a way that’s easy for someone with a high school education to understand. If you’re reviewing a contract and there’s language that’s unclear or confusing, don’t be afraid to ask an attorney for advice.
Also, avoid the “DIY pitfall.” Some inexperienced salespeople america phone number list will try to rewrite the terms and conditions, which can lead to trouble. Trying to draft “legalese” that is actually legally binding is hard enough, but if you change even one word written by an attorney, it could potentially change the entire meaning of a contract. In short: Ask an attorney if you need to make changes.
2. Review past contracts to see what you can improve
If you’re not sure where to start, take a moment to consider exactly what you want to get out of the sale. Take a careful look at your company’s past contracts. Are there areas where a deal fell short of your expectations? This will give you an idea of areas you could improve. You may want to include more details in the warranty, for example, or add specific penalties for a breach of contract.