Sales Contract Templates: How to write a Sales Contract the Easy Way
Table of contents
- What is a sales contract?
- Sales contract examples
- International sales contract
- Real estate contracts
- How are digital contracts different from paper ones?
- What is a sales contract template?
- Techniques to support sales contract template use
- A sales contract template you can use today
- How to write a sales contract
- Where to start writing a contract
- Different parts of a sales contract template
- Easy implementation for sales contracts
- Different types of sales contracts
- Sales contracts and closing sales
- Other sales contract templates available online
- Use SignTime to make sales contract templates
- Sales contract FAQ
- What is the purpose of a sales contract?
- What is a sales contract called?
- What are the five essential elements of a contract?
- What is included in a sales contract?
- How do you create a sales contract?
- What is the easiest way to create a sales contract?
- What are the types of sales contracts?
- What is a direct sales contract?
- Are direct sales legal?
- What’s the purpose of a sales contract?
- What are some examples of sales contracts?
- Can you write your own sales contract?
- What makes a good contract?
- Should I consult a legal expert when it comes to contracts?
- What tools can support sales contracts?
- Having great sales contracts can help close sale deals
Written by Timothy Ware
Sales contracts are one of the most common types of contracts businesses need signed on a regular basis. They often have similar features, and a good sales contract template can replace drafting new contracts regularly. This article goes through a sales contract template that you can use and modify for many different sales deals.
This reduces the time and money spent drafting new contracts. Another great way to save money is to upload your sales contract drafts to SignTime and have your contracts sent and signed digitally.
SignTime has a powerful suite of tools to help you with the contracting process. Sign up for our free trial now to have them at your disposal.
What is a sales contract?
Simply put, a sales contract (also called a sales agreement) is a signed agreement between companies and customers. It outlines all the relevant details about the terms of a sale.
Some of these details include information identifying the parties involved in the sale, payment information, delivery methods, and rights to cancel a sale.
What information gets added to a sales contract template generally depends on what kind of sale it is. I go through each part of a comprehensive sales contract template below.
Sales contract examples
As noted above, what contract template you want to use depends on what it is that you’re trying to accomplish. While a person might think that selling A is the same as selling B, there can be really significant differences between the sales contracts you need.
Take a look at two examples: real estate contracts and international sales contracts.
SignTime has a detailed article about real estate contracts, and so I encourage you to read about them there if you have any questions. One thing to note here is that real estate contracts often have conditions of sale so the buyer can back out if the house has issues.
International sales contract
Because international sales contracts are more complicated sales agreements, they need to have information about how to resolve disputes, and according to what country’s laws.
International laws may allow or prohibit things that need to be clarified in the contract, and the goal of international sales contracts is to harmonize trade and exchange.
Real estate contracts
A real estate contract, however, can have many clauses that specifically arrange for the seller to undertake certain activities, leave behind appliances, or ensure that specific problem spots in the house are addressed prior to the house sale.
A buyer may also opt to waive certain elements of a normal real estate contract depending on specific situations (for example, homeowner inspections).
As you can see, these two cases are quite different and could be even more radically different depending on the circumstances.
There are more examples of different kinds of contracts and how they are used below.
How are digital contracts different from paper ones?
Digital sales contracts greatly streamline the writing and signing process of contracting and also simplify the storage of all files. Without the need for filing cabinets and office space, everyone from HR departments to legal teams can quickly and efficiently check a contract.
Digital sales contracts result in increased sales and can revolutionize the way your company does business.
For some companies, it all starts with a digital sales contract.
What is a sales contract template?
Like many templates, a sales contract template is a boilerplate document that allows you to add or change information as necessary. These templates are very useful and important as they allow sales people and legal departments to streamline the creation of contracts to get them into the hands of clients faster.
The fact is that excitement wanes over time. You know that your service helps the prospect, and they understand that as well during the sales call. However, after the call, they might start questioning the value proposition of your service. Being able to send the digital contract during the sales call for e-signature reduces the chance you’ll lose the deal.
Techniques to support sales contract template use
In addition to understanding what a sales contract template is, knowing how to use it, and other ways in which to close a sale are very important.
As we discuss in our article on removing hurdles to sales, there are quite a few different methods to closing a sale. These include:
- Assumptive close
- Gauge close
- Now-or never close
- Takeaway close
- Summary close
- Hard close
Once you’ve managed to close a deal, all you need to do is get the contract signed in a safe and reliable way, and then store it. It’s that simple. If you want more information about how to make sure that your contracts are signed in a safe and reliable way, we have a great in-depth article to read.
A sales contract template you can use today
There are lots of different types of contracts that you can get your hands on today. There are many different templates available.
In some cases, companies like SignTime’s client Shizen Capital are looking for straightforward e-signature contracting solutions that make contracts easy, and they find that SignTime’s services match up perfectly with their needs.
Once you have a SignTime account, you can use any templates you want. You can store them in SignTime’s secure cloud storage, add in any fields, and send them to one or hundreds of signatories at once.
SignTime is for sales, and sales begins with a sales contract. Here is the beginning of a basic sales contract template:
You can download this template from eforms.com. However, it’s important to remember that, because different types of sales require different sales contract templates, you need to make sure that the contract is suitable for your needs.
How to write a sales contract can depend a lot on the specifics of a deal. If you don’t know which clauses you need to include in your contract, you should consult a legal expert on the matter.
How to write a sales contract
Sometimes you might be in a position where you can write a contract out yourself and want to do so. For some companies or individuals, they don’t want to use templates or contracting services, and so writing a sales contract is the choice.
If you write a contract, one of the most important things you can do before you write your contract is to establish what clauses and elements will need to be added to your contract. This will largely be based on what it is that you will be selling/providing.
Where to start writing a contract
Start by asking yourself a series of basic questions:
- Am I selling a good or a service?
- Who will be buying the product?
- How much will I be selling it for?
- How will I be accepting payment for it?
- How will I be getting it into the hands of the client after they buy?
- Is there an inspection period?
- Will there be a warranty period?
- Are there any special conditions that I need to make clients aware of?
Once you know the answer to these questions, you can start addressing each of the issues, one by one, making sure that you add all necessary sections to the contract. However, it’s important to note that most sales contract templates are easy to modify, and you can always add whatever you need to them.
Let’s take a look at some of the sections that appear in most sales contract templates.
Different parts of a sales contract template
You’ll find that the same types of sections will appear in many different contracts. These are generally considered fairly standard sections of a contract. Below, we go over six common elements of almost any sales contract. Remember that you can always add or take out any sections that might be needed (or not) to make your contract more tailored to your own needs.
If you want to have contracts without the headache of looking for the right template or needing to hire a lawyer to write one from scratch, head on over to SignTime and sign up for a free trial to see how easily you can modify templates, get you contracts signed, and improve your work flow and efficiency.
This section is straightforward. It identifies both parties (the buyer and the seller) and provides their information (names, contact address/information, etc.). Usually, once the parties have been identified, a contract will identify them as “purchaser” and “seller” (or equivalent terms) to avoid needing to add information dozens of times.
Description of goods
Also straightforward, this section will identify what it is that is being sold/purchased. A good contract will be clear about details of the product (how many, model numbers, sizes, colors, etc.) to make sure that there is no confusion.
Is payment going to be made in a lump sum? Will it be paid in installments? This sort of information, as well as deadlines, currency, and more, is included in this section of a contract. Of course, this is very important as currencies fluctuate in relative value. Paying in USD today is not the same amount as being paid in USD yesterday or tomorrow if the buyer/seller will need to exchange currencies from/to their home currency.
Instructions about delivery
This will identify information about when and where products will be delivered. It might also include information about who is responsible in the case of goods being lost in transit and other such details.
This clarifies whether or not the client has time to inspect the goods, and how long they have, after delivery. The inclusion of this clause in a contract can help to build loyalty from customers.
The warranties and guarantees clause clarifies what should be expected by both the buyer and the seller. It is important that this be included to avoid complicated issues should products be defective. This helps to protect both the buyer and the seller and ensures that potential issues are addressed before they become problems.
Easy implementation for sales contracts
Using templates can be really easy and straightforward, but there are other elements that should be considered when implementing a sales contract template.
C.S.I. Thailand, a software and systems development company, needed an easy to use platform that could be integrated with their system. They easily adjusted their internal approval flow and didn’t need special training to use SignTime as their contracting solution.
Different types of sales contracts
Contracts vary in terms of complexity and length, so it’s important that you know what kind of contract you need to use to avoid wasting resources like time on the wrong contract.
Because the type contract you will need depends on what you’re doing, we’ve put together an article that explains five different types of common sales contracts.
In that article, we explain the differences between “sales agreements” and “master service agreements”. We also touch on “government contracts” and “international sales contracts”.
Importantly, we cover the increasingly more common “terms of service” contract, as well as explain some of the details that make this type of contract different.
Knowing which contract to use shows that you’re professional and that you know what your clients need.
Sales contracts and closing sales
While having a proper contract is very important, it’s not the only thing that matters when it comes to closing a sale. There are lots of different factors that go into a good sale, and it’s important to remember that there are important skills, like closing a sale, that can help you.
Coupled with the ability to provide your customers with a contract right away, you can greatly improve the number of deals you close and your productivity.
In our article on the subject, we go into detail on six different ways that you can close sales more effectively:
- Be knowledgeable
- Show them you know them
- Be on time to the meeting and don’t waste time
- Avoid “canned language” that they’ve heard before
- Be clear and direct about terms of the contract
- Sign the contract on the call
SignTime’s contracting service can let you get a contract into the customer’s hands while you’re still on the call with them, making closing a deal that much easier.
Other sales contract templates available online
There are lots of options available to you for sales contract templates. Sometimes finding the right template can be a little bit challenging, and there are occasionally minor differences in them that you want to be aware of.
Here, we’ve put together a list of some common options (and one that may surprise you) for sales contract templates for you.
Auto sales contract
This simple sales contract template for auto sales has spaces to add relevant information such as the make and year of the car, body type, and engine information.
Used car sales contract
When selling a used car, you need to have a contract, and you should make sure that all the necessary details are clarified. This contract allows you to include the make and mode, VIN, and the price, among other things.
General sales contract
Simple and straightforward, this template lets you specify the necessary terms and conditions for the sale, including parties, delivery, payment terms, and more.
This type of contract has many different possible uses, so it’s important to keep in mind what you’re selling.
Puppy sales contract
We understand that many people might not be here looking for a puppy contract, but we did specifically want to use this opportunity to stress that, anytime you are engaging in a sale, it’s a good idea to have a contract.
If you do need to sell a dog, make the process straightforward and smooth by using a contract.
Freelance writing agreement
It’s not only goods but also services that should be sold with a contract. This type of sales contract template allows you to clarify the rates for the writing work and information about the specific project(s).
Use this type of contract when you’re hiring a writer for a project. We have a whole article dedicated to freelance work contracts, including a template ready for use with an article-by-article explanation.
This contract is used for cases where a landscaper is providing services to a client and can be filled in to explain the services being performed, limitations, and costs, among other things.
As this service may be considered a direct sales situation, it’s important to verify local laws regarding how best to handle this contract. Remember that some kinds of direct sales might be illegal where your business is operating.
Manufacture and sales contract
This contract is a bit more specific than a general sales contract as this also includes information about the manufacturing of a product.
This might have information/specifications about what a product should be, and may also include more details regarding what the client expects from the seller.
This is a useful contract to use if you need or produce more custom products.
Real estate contract
Buying and selling property is a major investment of time and money, and making sure that you are protected by a contract is very important.
We have gone into detail about real estate contracts previously, so we will only note that there are many elements to buying a house that can affect the contract you want to use.
Real estate purchases can also vary significantly from region to region, so it’s important to understand what the laws are in your area regarding the sale of property. We greatly encourage our readers to read this series, including our article on real estate option contracts and how to explain them to clients.
Use SignTime to make sales contract templates
Contract templates are an easy-to-use and powerful tool to have available to your company. Using a contracting service like SignTime allows you to upload any file and then add signature, and date fields to the document.
You can send the files to your customers whether you’re at the office or standing in line waiting for a coffee. SignTime makes your business more efficient and safer by empowering your sales team to deliver personalized contracts with the tap of a finger.
Having the ability to access files using tags saves you time and makes you more productive while giving your customers more personalized and tailored service.
Sign up for a free trial today to see how SignTime empowers your sales team.
Sales contract FAQ
With so many types of contracts and all the different options available, it’s normal to have questions. Here’s a list of some frequently asked questions for you to review. Because contracts are one of the key tools for any company, understanding them is pivotal.
We have also written an article about different types of sales contracts.
In that article, we explain some of the differences between the contracts, when you might use them, and talk a little bit about why they’re valuable tools that can make your business better.
What is the purpose of a sales contract?
Very simply, it is to act as a legally binding agreement between two or more parties. Generally, this is for the exchange of a product, service, or property for money. There is a buyer and a seller, and these can be people, companies, or even governments.
What is a sales contract called?
Sales contracts are sometimes also referred to as sales agreements. There are also many other specific types of contracts, ranging from real estate contracts to terms of service.
What are the five essential elements of a contract?
The five essential elements of a contract are:
- Offer: This is usually a verbal or written promise to participate in a deal.
- Acceptance: An agreement to the terms of the offer by both parties.
- Consideration: Clarification of what both parties are bringing to the contract/deal.
- Mutuality of Obligation: This is the binding of the agreement, ensuring that both parties will adhere to the agreed upon terms.
- Competency/Capacity: Both parties need to be able to legally agree to the terms of a contract. For example, all parties must be of legal age to be able to sign the agreement or must be in full possession of their faculties to be able to make decisions.
What is included in a sales contract?
There are quite a few elements that can be included in a sales contract, but many of them have similarities. For example, information about the buyer and the seller is included in almost every contract, and there is almost always a section that clarifies what is being sold and for how much money.
Because contracts are legally binding, they often contain all relevant information for both parties to act on.
How do you create a sales contract?
Creating sales contracts using SignTime is easy. Using a template, pick the fields that you need to change or add, input the information, and with the tap of a finger send the contract out to one or hundreds of clients for e-signature.
Once the contract is finished, store it digitally and access it at a moment’s notice with our easy tagging system.
What is the easiest way to create a sales contract?
Unless there is a specific need to draft a contract from scratch, using a sales contract template is one of the easiest ways to make a contract. These provide the legal language of the contract and only need to have specific pieces of information added to the document.
What are the types of sales contracts?
There are lots of different types of sales contracts, and the contract you need depends on the goods or services you’re selling.
If you’re selling property, you’d need a real estate contract. If you’re selling widgets, you’d need a sales contract. If you’re selling widgets internationally, you’d need an international sales contract.
Remember, if you ever need to know what contract you need for any given product or service, it’s always a good idea to seek legal advice on the matter.
What is a direct sales contract?
A direct sales contract is a contract that is signed, in person, at a place that is not the place of business of the supplier. Common situations for this type of contract include door-to-door sales or having lawn maintenance done.
Are direct sales legal?
It’s important to understand that not all services can be sold door to door and that this might possibly be illegal in certain circumstances. Always make sure that you verify local laws to ensure that selling your product and using direct sales contracts is acceptable.
What’s the purpose of a sales contract?
The goal of a sales agreement is to clarify all the terms and conditions that apply in any given sale. While not all sales contracts explicitly require the exchange of money (terms of service, for example, are a kind of sales contract but for a different situation), most of them do, and the sales agreement would clarify those details.
What are some examples of sales contracts?
Some common examples of sales contracts are sales agreements, terms of service, international sales contracts, and real estate contracts.
It’s important to note that the reason that there are so many kinds of contracts is that different products (or services) need to have different clauses in a contract. Make sure you’re using the right one for your products.
Remember that all sales contracts can be very different depending on the situation.
Can you write your own sales contract?
Absolutely! In addition, contracting solutions like SignTime allow you to create, modify, sign, and store contracts digitally so that you can have a contract in your client’s hands while you’re still on the phone with them. This can help to close sales and simplify your company’s workflow.
What makes a good contract?
Almost all contracts have similar information, but they do vary on a case-by-case basis. Not all contracts, for example, need to have information about inspection of goods, but some do. Knowing what you need for a good contract depends on what it is that you’re selling.
Should I consult a legal expert when it comes to contracts?
The answer to this question is that it depends on a lot of different factors. Most basic sales contract templates are boilerplate and can be used without issues. There are, however, things that can complicate whether or not any given contract fits.
International agreements, selling products that have legal implications, and even selling products door to door can all affect how a contract needs to be written (and in some cases signed).
It is very important to understand the legal elements of your product or service. If you are unsure of anything, contact a legal professional for guidance on the issue.
What tools can support sales contracts?
Having a full digital contracting suite, including e-signature capabilities, can help to make your business processes safer and smoother. By offering your clients the ability to sign digital contracts with a few taps on their smartphones, you give them more flexibility to get business done anywhere.
Sign up for SignTime’s free trial to support your sales team.
Having great sales contracts can help close sale deals
Sales agreements are very important to many businesses, and a good sales contract template can turn a “maybe” into a “yes.” Because they help to ensure clarity in an agreement, they can help to protect you and your client in the case of any disputes.
While there are lots of different kinds of sales contracts, using a sales contract template is one of the easiest ways to go about preparing your contract.
A digital signature service to make the signing process easy and safe for you and your customer.
Let SignTime help you bring your business and contracts into the future and make your company more effective and efficient. SignTime helps you create, sign, and store contracts with the tap of a finger. There has never been a better time to sign up for our free trial.