ITA401
L Thomson
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A good sales contract should include at a
minimum the following basic elements.
Detailing these aspects of the transaction will
reduce the opportunity for
misunderstandings between buyers and
sellers.
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Name and address of the parties
Products, standards and specifications
Quantity
Inspection
Total Value of the transaction
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Terms of delivery
Terms of payment
Taxes, duties, charges
Period of delivery/shipment
Provision for partial shipments, backorders,
consolidations
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Licenses, permits
Insurance
Documentary requirements
Product guarantees
Delayed/late shipments
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Force majeure (non performance)
Remedial action
Applicable law
Arbitration
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Discounts
Commissions
Signature of the parties
The terms and conditions of the sales contract
should not come as a surprise to the parties
of the contract.
A good contract will ensure that each party
knows what they are engaging in.