Checklist: what to include in your contract for the sale of products

What is a contract for the sale of products?

A contract for the sale of products is a legal agreement between a seller and a buyer, where the seller agrees to transfer ownership of specific products to the buyer in exchange for payment. This type of contract outlines the terms and conditions under which the sale will occur and typically covers various important details. It can be structured as a standalone agreement that both parties sign, or otherwise a set of terms and conditions that the customer agrees. Find out more by reading these FAQs.

Key clauses to include in a contract for the sale of products

So, what exactly should you include in a contract for the sale of products? Let's dive into a comprehensive checklist to ensure your contract for the sale of products covers all the necessary bases.

1. Commercial terms

The contract for the sale of products should include a section that clearly defines what goods / products are being provided, so there can be no dispute over what is expected to be provided to the customer. In addition, the quantity of the products should be clearly set out. The price of the products and applicable payment terms, as well as any other commercial detail, should also be included.

2. Order process

If repeat orders of the products are possible, the process for making future orders should be included in the contract for the sale of products.

3. Delivery of the goods

Key details relating to the delivery of the goods (such as when and where they will be delivered) should be included. The contract should also set out what will happen in the event of late or failed deliveries.

4. Supplier undertakings and guarantees

The key obligations relating to how the goods are to be supplied and the supplier’s obligations in relation to its supply should be defined (e.g. in relation to compliance with applicable laws and providing goods that are free from defects).

5. Consumer protections

If the goods are being provided to consumers, it is a requirement of consumer protection laws in the UK that certain protections are offered to consumers in contracts. The contract for the sale of products should include those protections.

6. Faulty goods

This clause should set out the process to be followed where there is a fault with the goods, including the process the customer must follow to notify the supplier of the fault. It will also include the remedies available to the customer in relation to the faulty goods.

7. Customer obligations and restrictions

This clause should set out the obligations that the customer must comply with to receive the goods (in addition to their obligation to pay for the services). For example, this could include providing certain information to the supplier.

8. Supplier's liability

If you are the supplier, the contract for the sale of products should include limitations and exclusions on your liability and potential financial exposure, in the event that there is a claim by a customer under the contract relating to the goods/products.

9. Term and termination

A section should be included that sets out how long the agreement will last for, as well as each party’s right to bring the agreement to an end early.

10. General

A number of other legal terms that are common in English law contracts should be included, including: governing law and jurisdiction, counterparts, notices, variation and severability.

How can Docue help?

All of the clauses listed above are included in Docue’s template contract for the sale of products. The template is lawyer-made, lawyer-maintained, and has lawyer-crafted guidelines to steer you through every stage of drafting an agreement which is right for your business. So use Docue’s contract for the sale of products template to easily draft a document that is tailored to your business in just a few simple steps.

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