A well-written sales agreement is more than paperwork; it is the foundation of trust between a buyer and a seller.
Whether you are selling products, services, or even real estate, an agreement sets clear expectations and protects both parties from costly misunderstandings.
Businesses of every size rely on these legally binding contracts to outline the purchase price, payment terms, delivery schedules, and the responsibilities of each side.
Modern tools, such as a CRM system, can help organize agreements, track their status, and remind your team about renewal dates or pending payments, keeping every deal on schedule.
Without a formal agreement of sale or sales agreement contract, you risk confusion over price, late payments, missed deadlines, or disputes that could escalate into legal action.
In this guide, we will explore ten practical tips to help you draft a strong sales agreement, from clarifying the scope of your deal to including clauses that safeguard your interests.
We will also share free sales agreement templates and samples so you can start with a proven structure and adapt it to your needs.
What every business should know about sales agreements
A sales agreement (sometimes called an agreement of sale, agreement to sell, or sales contract) is a legally binding document that records the terms of a transaction between two parties: the buyer and the seller.
It confirms that the buyer agrees to purchase, and the seller agrees to deliver, specific goods, services, or property at a clearly defined price.
There are several variations you may come across:
- Sales and purchase agreement/purchase sales agreement – Common in real estate or larger business transactions, where both sides need a detailed record of payment terms, inspection periods, and closing dates.
- Sales agreement form or sales agreement format – A simpler document used for straightforward deals or frequent purchases.
- Business sales agreement – Tailored for selling a company or significant assets, covering warranties, liabilities, and governing law.
Each type serves the same purpose: to protect both parties, define responsibilities, and make the transaction enforceable if disputes arise.
Whether you are drafting a property sales agreement sample, a sales consultant agreement, or a simple sales agreement for routine orders, clarity and completeness are vital.
A clear understanding of these terms will make it easier to apply the tips in the next section and select the right sales agreement template for your situation.
Key elements of a sales agreement
A strong sales agreement should do more than outline who pays and who delivers. It creates a shared understanding of expectations and gives both sides a clear legal pathway if something goes wrong.
Whether you are preparing a simple sales agreement or a detailed sales and purchase agreement, these elements deserve careful attention:
1. Parties involved
Identify the buyer and seller by their legal names and include business addresses or other identifying details. If either side acts through authorized representatives, list their titles to confirm they can sign on behalf of the company.
2. Description of goods, services, or property
Spell out precisely what is being sold. For products, mention model numbers, quantities, or specifications.
For services, include the scope of work and completion dates. In real estate transactions, describe the real property with location and boundaries.
State the total purchase price and the payment method. Indicate any deposits, payment plans, or penalties for late payments. A clear schedule protects against missed deadlines and confusion over when funds are due.
3. Purchase price and payment terms
State the total purchase price and the payment method. Indicate any deposits, payment plans, or penalties for late payments. A clear schedule protects against missed deadlines and confusion over when funds are due.
4. Delivery and closing details
Clarify delivery dates, shipping terms, or the closing date for property deals. Mention who carries the risk of loss until the buyer accepts the goods or services.
5. Inspection and acceptance
Allow the buyer to perform their own inspection before finalizing the purchase. Define how long they have to report issues and what happens if they accept or reject the goods.
6. Warranties and seller obligations
Outline any warranties about quality, performance, or title. If none are offered, add disclaimers to prevent disputes later. In a business sales agreement, specify the liabilities the seller will or will not assume.
7. Governing law and dispute resolution
State the governing law and how you’ll resolve disagreements through mediation, arbitration, or court proceedings. Having a transparent process limits surprises if disputes arise.
8. Entire agreement and other clauses
An entire agreement clause prevents reliance on verbal promises or side letters. You may also add clauses about regulatory requirements, confidentiality, or late performance fees, depending on the business sector.
10 Sales agreement tips every business needs
A carefully drafted sales agreement helps prevent disputes, ensures timely payments, and builds confidence between both parties. Below are ten actionable tips to strengthen your contracts.
1. Use plain, clear language
A contract written in overly technical or legalistic language can confuse the people who must follow it. Aim for wording that is easy to read and leaves no room for misinterpretation.
- Write sentences in short, direct form
- Replace jargon with terms that anyone in your industry can understand
- Define uncommon words in a short glossary or in parentheses
2. Be precise with purchase price and payment schedule
Your sales agreement contract should make the cost of the transaction unmistakable. Break down the purchase price, deposits, and due dates so both sides know exactly what to expect.
- State the total purchase price in numbers and words
- Include payment methods (bank transfer, card, cheque) and deadlines
- Explain late payment fees or remedies for a buyer’s failure to pay
To make payment schedules easier to manage, store the agreement inside a CRM so automated reminders handle upcoming due dates and overdue balances.
3. Specify what is being sold
A vague description of goods or services can lead to arguments after signing. A thorough scope helps both sides confirm they are agreeing to the same deal.
- For products: include specifications, model numbers, or batch codes
- For services: outline deliverables, timelines, and quality standards
- For property: describe the real estate or real property with its exact location and boundaries
4 Clarify delivery and closing details
Timelines matter. A good agreement should leave no doubt about when the seller’s obligations end and the buyer’s begin.
- Mention delivery dates, shipping terms, or the closing date for property
- Identify who bears the risk of loss before acceptance
- Add provisions for delays, force majeure, or agreed extensions
5. Provide an inspection and acceptance process
Buyers often need time to review what they have purchased. A written inspection procedure keeps expectations clear.
- Allow a reasonable inspection period before final approval
- Explain how defects or non-conformities should be reported
- State that acceptance occurs once the buyer signs off or uses the goods
6. Define warranties and seller obligations
A sales and purchase agreement should state whether the seller warrants the goods or services, or if they are sold “as is.”
- Clarify warranties on quality, title, or performance
- Note who handles repairs or replacements if issues arise
- Add disclaimers where no warranties are intended
Many CRMs allow you to upload signed PDFs or use e-signature integrations, attaching them directly to a customer record for quick access.
7. Include governing law and dispute resolution
Even the best-written agreements may face challenges, which is why consulting with a business lawyer to establish a governing law and a dispute mechanism helps control how issues are resolved.
- Identify the jurisdiction or state laws that apply
- Choose between mediation, arbitration, or court proceedings
- Set a process for recovering costs or damages if one party breaches
8. Keep templates simple but comprehensive
Templates save time, but they should be adapted thoughtfully to your needs.
- Use a sales agreement template as a starting point, not a final draft
- Customize clauses for industry rules or recurring purchases
- Remove irrelevant sections to avoid unnecessary complexity
9. Adapt clauses for real estate or property sales
When a deal involves property, a real estate purchase and sales agreement sample must address special points.
- Confirm ownership and regulatory requirements before signing
- Note inspection periods, zoning checks, and closing costs
- Address deposits, title transfer, and recording of deeds
10. Secure signatures from authorized representatives
A contract is enforceable only when signed by people with the power to bind their organization.
- List each party’s full legal name and position
- Confirm signers are authorized representatives for businesses
- Keep a dated, signed copy for your records
4 Free sales agreement templates
A solid template saves hours of drafting time and helps you include all the key clauses a sales agreement should have.
Below are four sample layouts each suited to different types of transactions. Use them as a starting point, then adapt the wording to match your needs and local regulations.
1. Simple sales agreement template
For straightforward deals such as selling office supplies, digital services, or one-off projects, a short, clear format is often enough. It focuses on the essentials; who is selling, who is buying, what’s included, how much it costs, and when delivery happens.
Template 1
Sales Agreement (“Agreement”) made on [Date], between: Seller: [Seller’s Legal Name & Address] Buyer: [Buyer’s Legal Name & Address] - Description of Goods/Services: ___________________________
- Purchase Price: $__________, payable as follows: _________
- Delivery Date & Terms: _________________________________
- Warranties (if any): ___________________________________
- Governing Law & Dispute Resolution: _____________________
Seller Signature: ___________ Buyer Signature: ___________ |
This basic structure works best for frequent purchases or small orders where neither side wants a long document.
If the sale involves multiple shipments or ongoing services, you can add extra clauses about schedule, performance, or service levels.
2. Property / real estate sales agreement sample
Real estate deals carry higher stakes, so contracts must cover inspections, deposits, and the transfer of ownership. A property sales agreement spells out the buyer’s and seller’s responsibilities until the closing date.
Template 2
Property Sales Agreement made on [Date] between: Seller: [Name & Address] Buyer: [Name & Address] - Description of Property: [Legal Description]
- Purchase Price & Deposit: $______ (non-refundable deposit $____)
- Inspection Period: ___ days from signing
- Closing Date: ____________
- Risk of Loss: Remains with Seller until closing
Signatures: __________________________ |
Before signing, both parties should review zoning regulations, liens, or other regulatory requirements. It is also wise to include language about title insurance or what happens if repairs are needed before the handover.
3. Business sales agreement format
When selling a company or significant assets, you need more than a payment clause. This agreement protects both sides by clarifying what is being sold, which liabilities remain with the seller, and how disputes will be resolved.
Template 3
Business Sales Agreement entered into on [Date]: Seller agrees to sell, and Buyer agrees to purchase, [Business Name]. - Assets Included: __________________________________
- Liabilities Assumed: ______________________________
- Total Purchase Price & Payment Schedule: __________
- Warranties & Representations: _____________________
- Governing Law: ___________________________________
|
This format often includes non-compete clauses, employee transition terms, and warranties about financial statements or intellectual property.
Because business transfers can be complex, legal advice is strongly recommended for deals of this scale.
4. Sales rep or consultant agreement example
If you work with sales representatives or consultants, a clear written agreement keeps compensation and responsibilities transparent. This type of contract focuses on commissions, territories, and how performance will be tracked.
Template 4
Sales Representative Agreement between: Company: [Name] (“Principal”) Representative: [Name] (“Rep”) - Territory / Accounts: _______________________________
- Commission Rate & Payment Terms: __________________
- Reporting Obligations: _____________________________
- Confidentiality & Non-Compete: ____________________
|
Agreements like this can also address expenses, lead ownership, and what happens when the working relationship ends. A good sales rep agreement builds mutual trust and sets professional standards for everyone involved.
Streamlime your contract workflow
Don't just draft agreements = manage them. Use a CRM to store, track, and monitor your contracts alongside every deal in your pipeline.
How to customize your sales agreement
A sales agreement is more than a signed document; it is a legally binding contract that reflects the exact terms between a buyer and a seller.
Templates are helpful starting points, but every purchase and sales agreement must be tailored to the transaction, the parties involved, and any regulatory requirements.
Personalizing a draft ensures it protects both sides and aligns with the purpose of a sales contract.
1. Clarify the scope and deliverables
The first step in refining an agreement is to define precisely what the buyer purchases. A vague description of goods or services can lead to disagreements over quality, quantity, or delivery terms.
- Specify product names, SKUs, or model numbers for business transactions
- For real estate sales agreements, include property boundaries, fixtures, and an inspection period
- Mention shipping, installation, or handover arrangements to manage risk of loss
A clear scope statement gives both the buyer and the seller confidence in the entire agreement.
2. Define payment terms and total purchase price
Payment provisions are the foundation of any sales agreement contract. They set expectations about when and how the buyer agrees to pay, and what happens if late payments or a party breaches the deal.
- State the total purchase price, deposits, and any non-refundable fees
- Include payment schedules, methods, or plans that suit frequent purchases or large projects
- Outline penalties, interest, or legal recourse in case of a buyer’s failure to pay
Well-structured payment terms protect cash flow and provide legal protection for both sides.
3. Add risk management and legal protections
Every agreement to sell carries some level of risk. Strengthening your contract with compliance language and dispute resolution clauses can prevent costly issues.
- Warranties and representations regarding product quality or seller warrants
- Dispute resolution or mediation options for when disagreements arise
- Insurance, liability limits, or governing law for complex business sectors
These details make a sales and purchase agreement a robust, legally binding document.
4. Customize for long-term or complex deals
Some sales agreements cover ongoing services or phased deliveries. They benefit from language that manages evolving requirements or performance standards.
- Termination rights, renewal periods, and closing dates for extended contracts
- Service level expectations, inspection rights, and payment milestones
- Procedures for updating scope, delivery terms, or price adjustments
A carefully adapted contract ensures stability even when a project grows or market conditions shift.
Conclusion
A well-structured sales agreement gives every deal a clear path from negotiation to closing. It sets expectations on price, delivery terms, and legal protection so neither party is left guessing.
Whether you are preparing a business sales agreement, a property sales agreement sample, or a tailored purchase and sales agreement for ongoing services, investing time in the details pays off. When drafted thoughtfully, a sales agreement acts as a roadmap for cooperation rather than a hurdle.
It protects your organization if disputes arise, keeps payment plans on track, and ensures both the buyer and the seller understand their obligations.
If you want to elevate how you handle contracts, start by refining how your team manages agreements overall.
Explore tools that help organize documents, automate approvals, and track obligations so you can focus on building lasting relationships while knowing every transaction rests on a solid legal foundation.
Frequently asked questions
1. What is a sales agreement?
A sales agreement is a legally binding contract between a buyer and a seller that outlines the purchase price, delivery terms, payment schedule, and other conditions for transferring goods, services, or property.
2. What is the purpose of a sales contract?
Its purpose is to protect both parties by documenting the entire agreement, clarifying obligations, and providing legal recourse if disputes arise.
3. What should be included in a sales agreement?
Key elements are the names of the parties involved, a description of the goods or services, the total purchase price, payment terms, delivery dates, and dispute resolution clauses.
4. What does a sales agreement look like?
It usually follows a simple format with headings for buyer and seller details, scope of sale, price, warranties, delivery terms, and signatures from authorized representatives.
5. How is a sales agreement different from an agreement to sell?
A sales agreement transfers ownership at once or on a specific date, while an agreement to sell often sets future terms, with ownership transferring after conditions (like full payment) are met.
Key takeaways
A well-written sales agreement is more than paperwork; it is the foundation of trust between a buyer and a seller.
Whether you are selling products, services, or even real estate, an agreement sets clear expectations and protects both parties from costly misunderstandings.
Businesses of every size rely on these legally binding contracts to outline the purchase price, payment terms, delivery schedules, and the responsibilities of each side.
Modern tools, such as a CRM system, can help organize agreements, track their status, and remind your team about renewal dates or pending payments, keeping every deal on schedule.
Without a formal agreement of sale or sales agreement contract, you risk confusion over price, late payments, missed deadlines, or disputes that could escalate into legal action.
In this guide, we will explore ten practical tips to help you draft a strong sales agreement, from clarifying the scope of your deal to including clauses that safeguard your interests.
We will also share free sales agreement templates and samples so you can start with a proven structure and adapt it to your needs.
What every business should know about sales agreements
A sales agreement (sometimes called an agreement of sale, agreement to sell, or sales contract) is a legally binding document that records the terms of a transaction between two parties: the buyer and the seller.
It confirms that the buyer agrees to purchase, and the seller agrees to deliver, specific goods, services, or property at a clearly defined price.
There are several variations you may come across:
Each type serves the same purpose: to protect both parties, define responsibilities, and make the transaction enforceable if disputes arise.
Whether you are drafting a property sales agreement sample, a sales consultant agreement, or a simple sales agreement for routine orders, clarity and completeness are vital.
A clear understanding of these terms will make it easier to apply the tips in the next section and select the right sales agreement template for your situation.
Key elements of a sales agreement
A strong sales agreement should do more than outline who pays and who delivers. It creates a shared understanding of expectations and gives both sides a clear legal pathway if something goes wrong.
Whether you are preparing a simple sales agreement or a detailed sales and purchase agreement, these elements deserve careful attention:
1. Parties involved
Identify the buyer and seller by their legal names and include business addresses or other identifying details. If either side acts through authorized representatives, list their titles to confirm they can sign on behalf of the company.
2. Description of goods, services, or property
Spell out precisely what is being sold. For products, mention model numbers, quantities, or specifications.
For services, include the scope of work and completion dates. In real estate transactions, describe the real property with location and boundaries.
State the total purchase price and the payment method. Indicate any deposits, payment plans, or penalties for late payments. A clear schedule protects against missed deadlines and confusion over when funds are due.
3. Purchase price and payment terms
State the total purchase price and the payment method. Indicate any deposits, payment plans, or penalties for late payments. A clear schedule protects against missed deadlines and confusion over when funds are due.
4. Delivery and closing details
Clarify delivery dates, shipping terms, or the closing date for property deals. Mention who carries the risk of loss until the buyer accepts the goods or services.
5. Inspection and acceptance
Allow the buyer to perform their own inspection before finalizing the purchase. Define how long they have to report issues and what happens if they accept or reject the goods.
6. Warranties and seller obligations
Outline any warranties about quality, performance, or title. If none are offered, add disclaimers to prevent disputes later. In a business sales agreement, specify the liabilities the seller will or will not assume.
7. Governing law and dispute resolution
State the governing law and how you’ll resolve disagreements through mediation, arbitration, or court proceedings. Having a transparent process limits surprises if disputes arise.
8. Entire agreement and other clauses
An entire agreement clause prevents reliance on verbal promises or side letters. You may also add clauses about regulatory requirements, confidentiality, or late performance fees, depending on the business sector.
10 Sales agreement tips every business needs
A carefully drafted sales agreement helps prevent disputes, ensures timely payments, and builds confidence between both parties. Below are ten actionable tips to strengthen your contracts.
1. Use plain, clear language
A contract written in overly technical or legalistic language can confuse the people who must follow it. Aim for wording that is easy to read and leaves no room for misinterpretation.
2. Be precise with purchase price and payment schedule
Your sales agreement contract should make the cost of the transaction unmistakable. Break down the purchase price, deposits, and due dates so both sides know exactly what to expect.
To make payment schedules easier to manage, store the agreement inside a CRM so automated reminders handle upcoming due dates and overdue balances.
3. Specify what is being sold
A vague description of goods or services can lead to arguments after signing. A thorough scope helps both sides confirm they are agreeing to the same deal.
4 Clarify delivery and closing details
Timelines matter. A good agreement should leave no doubt about when the seller’s obligations end and the buyer’s begin.
5. Provide an inspection and acceptance process
Buyers often need time to review what they have purchased. A written inspection procedure keeps expectations clear.
6. Define warranties and seller obligations
A sales and purchase agreement should state whether the seller warrants the goods or services, or if they are sold “as is.”
Many CRMs allow you to upload signed PDFs or use e-signature integrations, attaching them directly to a customer record for quick access.
7. Include governing law and dispute resolution
Even the best-written agreements may face challenges, which is why consulting with a business lawyer to establish a governing law and a dispute mechanism helps control how issues are resolved.
8. Keep templates simple but comprehensive
Templates save time, but they should be adapted thoughtfully to your needs.
9. Adapt clauses for real estate or property sales
When a deal involves property, a real estate purchase and sales agreement sample must address special points.
10. Secure signatures from authorized representatives
A contract is enforceable only when signed by people with the power to bind their organization.
4 Free sales agreement templates
A solid template saves hours of drafting time and helps you include all the key clauses a sales agreement should have.
Below are four sample layouts each suited to different types of transactions. Use them as a starting point, then adapt the wording to match your needs and local regulations.
1. Simple sales agreement template
For straightforward deals such as selling office supplies, digital services, or one-off projects, a short, clear format is often enough. It focuses on the essentials; who is selling, who is buying, what’s included, how much it costs, and when delivery happens.
Template 1
Sales Agreement (“Agreement”) made on [Date], between:
Seller: [Seller’s Legal Name & Address]
Buyer: [Buyer’s Legal Name & Address]
Seller Signature: ___________ Buyer Signature: ___________
This basic structure works best for frequent purchases or small orders where neither side wants a long document.
If the sale involves multiple shipments or ongoing services, you can add extra clauses about schedule, performance, or service levels.
2. Property / real estate sales agreement sample
Real estate deals carry higher stakes, so contracts must cover inspections, deposits, and the transfer of ownership. A property sales agreement spells out the buyer’s and seller’s responsibilities until the closing date.
Template 2
Property Sales Agreement made on [Date] between:
Seller: [Name & Address]
Buyer: [Name & Address]
Signatures: __________________________
Before signing, both parties should review zoning regulations, liens, or other regulatory requirements. It is also wise to include language about title insurance or what happens if repairs are needed before the handover.
3. Business sales agreement format
When selling a company or significant assets, you need more than a payment clause. This agreement protects both sides by clarifying what is being sold, which liabilities remain with the seller, and how disputes will be resolved.
Template 3
Business Sales Agreement entered into on [Date]:
Seller agrees to sell, and Buyer agrees to purchase, [Business Name].
This format often includes non-compete clauses, employee transition terms, and warranties about financial statements or intellectual property.
Because business transfers can be complex, legal advice is strongly recommended for deals of this scale.
4. Sales rep or consultant agreement example
If you work with sales representatives or consultants, a clear written agreement keeps compensation and responsibilities transparent. This type of contract focuses on commissions, territories, and how performance will be tracked.
Template 4
Sales Representative Agreement between:
Company: [Name] (“Principal”)
Representative: [Name] (“Rep”)
Agreements like this can also address expenses, lead ownership, and what happens when the working relationship ends. A good sales rep agreement builds mutual trust and sets professional standards for everyone involved.
Streamlime your contract workflow
Don't just draft agreements = manage them. Use a CRM to store, track, and monitor your contracts alongside every deal in your pipeline.
How to customize your sales agreement
A sales agreement is more than a signed document; it is a legally binding contract that reflects the exact terms between a buyer and a seller.
Templates are helpful starting points, but every purchase and sales agreement must be tailored to the transaction, the parties involved, and any regulatory requirements.
Personalizing a draft ensures it protects both sides and aligns with the purpose of a sales contract.
1. Clarify the scope and deliverables
The first step in refining an agreement is to define precisely what the buyer purchases. A vague description of goods or services can lead to disagreements over quality, quantity, or delivery terms.
A clear scope statement gives both the buyer and the seller confidence in the entire agreement.
2. Define payment terms and total purchase price
Payment provisions are the foundation of any sales agreement contract. They set expectations about when and how the buyer agrees to pay, and what happens if late payments or a party breaches the deal.
Well-structured payment terms protect cash flow and provide legal protection for both sides.
3. Add risk management and legal protections
Every agreement to sell carries some level of risk. Strengthening your contract with compliance language and dispute resolution clauses can prevent costly issues.
These details make a sales and purchase agreement a robust, legally binding document.
4. Customize for long-term or complex deals
Some sales agreements cover ongoing services or phased deliveries. They benefit from language that manages evolving requirements or performance standards.
A carefully adapted contract ensures stability even when a project grows or market conditions shift.
Conclusion
A well-structured sales agreement gives every deal a clear path from negotiation to closing. It sets expectations on price, delivery terms, and legal protection so neither party is left guessing.
Whether you are preparing a business sales agreement, a property sales agreement sample, or a tailored purchase and sales agreement for ongoing services, investing time in the details pays off. When drafted thoughtfully, a sales agreement acts as a roadmap for cooperation rather than a hurdle.
It protects your organization if disputes arise, keeps payment plans on track, and ensures both the buyer and the seller understand their obligations.
If you want to elevate how you handle contracts, start by refining how your team manages agreements overall.
Explore tools that help organize documents, automate approvals, and track obligations so you can focus on building lasting relationships while knowing every transaction rests on a solid legal foundation.
Frequently asked questions
1. What is a sales agreement?
A sales agreement is a legally binding contract between a buyer and a seller that outlines the purchase price, delivery terms, payment schedule, and other conditions for transferring goods, services, or property.
2. What is the purpose of a sales contract?
Its purpose is to protect both parties by documenting the entire agreement, clarifying obligations, and providing legal recourse if disputes arise.
3. What should be included in a sales agreement?
Key elements are the names of the parties involved, a description of the goods or services, the total purchase price, payment terms, delivery dates, and dispute resolution clauses.
4. What does a sales agreement look like?
It usually follows a simple format with headings for buyer and seller details, scope of sale, price, warranties, delivery terms, and signatures from authorized representatives.
5. How is a sales agreement different from an agreement to sell?
A sales agreement transfers ownership at once or on a specific date, while an agreement to sell often sets future terms, with ownership transferring after conditions (like full payment) are met.
Yasir Ahmad
Content EditorYasir Ahmad is the content editor at Salesmate who adds the finishing touch to the blogs you enjoy, turning CRM talk into stories you’ll actually want to read. He’s all about making complex stuff simple and a little fun too. When he’s not fine-tuning words, you can find him diving into the world of literature, always on the hunt for the next great story.