How important is the relationship between your business and your customers?  The ability of your company to successfully transact business and provide goods and services to your customers is governed by your sales and customer agreement or contract.  An effective sales and customer agreement clearly establishes the seller (your company), the buyer, the goods and/or services to be provided and the terms under which the transaction is to take place.

The experienced business contract attorneys at the Watkins Firm carefully craft each sales agreement and business contract for our clients to protect all aspects of a transaction or relationship.  Our decades of experience in business litigation informs many aspects of business contract creation.

There are several important elements of a well crafted sales and customer agreement including but not limited to:

The date of execution and the term of the agreement – ensure that all purchase transactions involving post-sale obligations such as warranties, support or related services are dated at execution.  This establishes the “start” of the clock on important time frames specified within the contract.

A clear and substantive description of the goods and/or services to be provided – it is in your interest to ensure that the sales agreement contains a comprehensive description containing specific details regarding the product(s) and service(s) to be provided.  Misunderstandings surrounding expectations in this area lead to the majority of business lawsuits and disputes.

Delivery – the sales and customer agreement should clearly specify how and when the goods and services are to be delivered, and the party responsible for damage during transit.  Consideration should be given to the limitation of damages that may arise due to missed aspects of delivery or installation complications.

Inspection terms – will the buyer have the opportunity to inspect or reject the goods?  Does your product have a shelf life?  What happens if there is a material defect in the workmanship?  How long will the buyer have to identify the issue and what are the terms of remediation?  Many self-constructed and downloaded contracts miss this important component of the sales and customer agreement leading to relationship issues and contingent liability.

Payment – How will the buyer make payment and when is it due?  Are you offering terms or is there a specific method of payment your company requires?  If you are extending payments over a period of time an enforceable note should be created separately or incorporated into your sales and customer agreement contract.  What happens if the buyer fails to complete agreed upon payment(s)?

Guarantees and Warranties – What guarantee or warranty are you providing as part of the sales agreement between your business and your customers?  What is the term of the warranty or guarantee and how will replacement for defective products or warranty issues be managed?

It is never in your company’s best interest to attempt to create a sales and customer agreement or business contract on your own or download them from a forms site.  California has many laws that are quite unique, and the quality of your business contracts is directly associated with the long term viability and profitability of your company.  If you are interested in business contracts or the development of a sales agreement we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.