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What Is a Contract of Sale?

Several types of agreements exist depending upon the subject of a transaction. Most agreements involve the exchange of goods or services for a certain value of money. Such agreements are formalized into written, legal documents that detail the terms and conditions provided for by the buyer and seller. This legal document is referred to as a contract of sale.

A contract of sale is governed by the rules and regulations stipulated in the Uniform Commercial Code, if the contract is found to be within the jurisdiction of the United States or Canada. However, no matter what jurisdiction, a contract of sale has a general format. This format provides for the specific details of the agreement such as what goods or services are to be given in exchange for a certain amount of money. A contract of sale also provides the essential information as to how the payment is to be given, how, when, and where are the goods or services to be delivered, and other necessary terms and conditions. The contract also provides information regarding the parties who are involved in the sale. Such information includes the full, legal names of the companies and persons of both buyer and seller.

Contracts of sale also detail the condition of the property before it is exchanged. This description of the property may be in the form of written statements, photographs, or videos. All other details involved in the sale will be detailed meticulously in order to ensure that all conditions have been met.

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