Four Common Sales Contract Mistakes

Four Common Sales Contract Mistakes

| Aug 16, 2017 | sales contract |

A sales contract is an agreement that both the buyer and seller of something sign in order to define the terms of their sale of personal property, securities or goods. A sales contract can be very helpful and beneficial to both sides of a sale, but only if they are done right. But sales contract mistakes can derail a deal and leave both a buyer and seller without their desired result.

Below are 4 common ways in which sales contract mistakes can rear their ugly head.

Cross Your T’s and Dot Your I’s to Prevent Sales Contact Mistakes

The simplest way for a sales contract to have mistakes is having incorrect information listed in the contract. This includes an incorrect description of the product being sold, including the type of product being sold, the model number, the weight, the color and the size. Make sure your description of the product or property is as clear and detailed as you can make it.

If your contract deals with real estate, make sure the location is exactly defined and described, including everything that will be involved in the sale, such as buildings and other equipment.

Bad Delivery Instructions

If the product(s) in question will be delivered somewhere, the same caveats as described above apply. Make sure the delivery address is exact and correct. The same goes for the time and method of delivery. If something is delivered to the wrong place and/or at the wrong time, it can be a serious problem.

If you are the seller of a product, getting delivery instructions wrong can also be costly if you have to pay to have the product re-delivered.

Failure to Address Contingencies

A good sales contract can include the answers to some “what if?” questions, like “what if the product is delivered to the wrong place or at the wrong time?” or “what if the product is lost in transit or damaged?” A good contract will have plans for contingencies, especially if transport of the product could incur problems or delays.

When something like real estate is involved, contingencies could include regulatory failures and failing to meet closing requirements.

Doing Business with the Wrong Person

Sales contracts can protect you if you are a buyer or seller, and in the United States, domestic sales contracts are governed by the Uniform Commercial Code. International sales contracts fall under the United Nations Convention on Contracts for the International Sale of Goods (CISG), also known as the Vienna Sale Convention.

So if you are wronged in a deal, you have legal recourse, but you must also recognize that some people are unreliable or even worse, purposefully deceitful. If you have questions about sales contract mistakes, contact the Law Offices of Peter M. Feaman, PA today. We have lawyers who have experience in that area of the law.

Additional Reading:

Most Common Types of Business Litigation

Four Things to Think About When Selling a Business