One Contract to Keep Customers from Filing a Law Suit

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.

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