This type of contract will protect you and your business from unhappy customers.
The Purchase Agreement
A purchase agreement is a type of legal document outlining the different conditions and terms that are related to the sale of goods.
It creates a legally binding contract between you and your customer.
Also, it is generally related to the sale and purchase of goods, rather than services (see below for details on a service agreement).
A purchase agreement ensures that every time you make a sale, you can quickly meet that customer’s demand. Terms like indemnification, exclusivity and limitations of liability need to be drafted carefully so that they make legal and business sense.
A well-written purchase agreement should include all information that is relevant to the transaction. It should be clearly-written to avoid any misunderstandings regarding the various terms.
Some information that should be contained in a basic purchase agreement may include:
Information regarding the buyer and seller, including names, phone numbers, and addresses;
– Contact information for any witnesses or co-signers;
– The type of sale and the product or goods involved;
– Price and quantities for the sale;
– The date of the agreement and terms related to duration;
– Terms for delivery and shipping (if applicable);
– Dates covering the fulfillment of conditions and requirements;
– How the agreement can be amended or revised in the future; and
– Whether litigation is an option in the event of a legal dispute.
The Service Agreement
A services agreement is needed when a business wants to engage your business’ services.
Creating a services agreement will ensure that both parties understand their obligations and protect the positions of both businesses in case of termination or legal dispute.
You should use a services agreement:
– when you wish to supply services to another business;
– when you require certain terms and conditions to carry on its work;
– to ensure that you have a legal right to receive payment; and
– to protect your business.
The service agreement should cover:
– the services provided;
– payment terms;
– service credits (optional);
– change control;
– limitation of liability;
– confidentiality, IP, data protection and anti-bribery; and
– how and when one is permitted to terminate the agreement.
Service agreements are an important aspect of many business/consumer transactions.
You may need a lawyer for advice if you need help creating, reviewing, or editing a service agreement. But the effort in creating a good service agreement will spare you headaches and appearances in a courtroom down the line.