What’s the “near-miss” end goal for any B2B marketer? Being in the final stage of a big sale. Correct?
You’ve done the hard work, built the relationship, and now it’s time to seal the deal.
Let’s pause here.
Before any handshakes or celebrations, there's one essential step you can’t overlook: the sales contract.
This curated paperwork safeguards your business and assures your buyer that everything’s clear and in writing.
A well-structured sales contract outlines every critical detail of the sale:
▢ Who’s involved?
▢ What’s being sold?
▢ How will the payments work?
▢ What happens if any issues arise?
But don’t worry; creating your own contract doesn’t have to be intimidating. We’ll walk you through everything you need, covering the following:
▢ Different contract types
▢ Essential sections
▢ Insider tips to help you build a professional, reliable agreement
So let’s dive in and make this part of your sales process as seamless and straightforward as possible.
Sales contracts come in several forms, each suited to different sales scenarios. Choosing the right type depends on the specific transaction, industry norms, and the level of customization needed. Here’s a look at the main contract types and when to use each:
Selecting the right contract type impacts payment terms, obligations, and risk management. Evaluate each option based on your business needs and the scope of the transaction.
A B2B lead gen sales contract serves as a comprehensive framework for business transactions, clarifying each party’s obligations and expectations to avoid disputes and misunderstandings later on.
Here’s a breakdown of the essential sections that any robust B2B sales contract should include, ensuring an explicit, legally sound agreement for both parties involved.
Begin by clearly identifying both parties involved in the transaction. This section should include each entity's:
▢ Full legal names
▢ Primary addresses
▢ Designated representatives
For example, a technology provider (the seller) and a financial institution (the buyer) would each name a specific point of contact authorized to make decisions.
Detail precisely what’s being sold—a product, a service, or a combination. Outline specifications, quantity, quality standards, or scope of work if it’s a service agreement.
For instance, a software provider might specify the functionalities in a product package, and a service provider would detail the specific deliverables the client will receive.
This clarity ensures the buyer knows exactly what they’re purchasing and limits the chance of future disagreements.
Next, specify the agreed-upon price, payment schedule, and accepted payment methods.
▢ For recurring services, outline any regular billing intervals
▢ For products, include the total amount payable, taxes, and any discounts applied
Transparency in payment expectations, such as the due date for each invoice and penalties for late payments, is crucial in keeping the cash flow predictable and the partnership mutually beneficial.
Establish a timeline for delivery or completion of work. This includes:
▢ Expected shipping or delivery dates for physical products
▢ Project milestones, timelines, or deadlines for services
For instance, if delivering a customized software solution, include a timeline for each development phase and a final delivery date. Including delay contingencies, like supply chain issues, also protects both parties.
Define what constitutes a breach of contract and the steps each party can take in case of non-compliance.
▢ For example, if one party fails to meet their payment obligations, the other may have the right to terminate the contract or pause services.
▢ Similarly, outline the buyer’s options for remedies or compensation if the agreed products or services are not delivered.
This section serves as a safety net, minimizing risk in cases where terms are not met.
For businesses handling proprietary information, confidentiality clauses protect both parties. This section should define the following:
▢ How confidential information will be handled
▢ Who has access
▢ How intellectual property is managed
For instance, if a buyer gains access to proprietary software, the seller can ensure that IP rights are retained while permitting the buyer a license to use it.
A force majeure clause addresses unforeseen events outside either party’s control—such as:
▢ Natural disasters
▢ Government actions
▢ Major supply chain disruptions
—that could affect the agreement.
Specify that if such events arise, both parties will work to resolve the impact in good faith, whether through revised delivery dates or alternative arrangements.
Finally, identify the legal jurisdiction that will govern the contract. This clarifies which state or country’s laws apply in case of disputes, especially critical for cross-border transactions.
Considering the above elements, here’s a generic sales contract template. You can customize it based on your business’s unique requirements.
This template provides a foundation to build a detailed, tailored contract. While templates are helpful, it’s always wise to consult legal counsel for complex or high-stakes agreements to cover every critical angle.
Creating a truly foolproof sales contract requires a balance of precision and flexibility. You want to be clear, easy to understand, and thorough, leaving no room for misunderstandings. Here’s how to design a rock-solid, professional, and fair contract.
First, consider what outcomes you’re looking to secure with this agreement.
What protections, terms, or expectations will help you build a clear, mutually beneficial contract?
Consider specifics like payment timelines, confidentiality terms, and conditions for handling unforeseen events.
Reflect on past experiences to pinpoint any misunderstandings or issues you want to address:
Pro Tip: Taking a few moments to clarify your contract goals can prevent miscommunication down the road.
Starting with a structured template can make the process faster and smoother, providing a solid framework with outlined essential sections.
Explore well-regarded options online that align with your type of business, like a services agreement or product sales contract.
This foundation helps ensure legal precision and covers most of the core components you’ll need.
Once you have a base structure, it’s time to tailor it with essential clauses that specifically address your agreement.
Cover the essentials like parties involved, payment methods, timelines, and specific expectations. Here are some critical sections to consider adding:
Once you add these clauses, review the contract to ensure it’s aligned with your goals and reflects your standards.
With your clauses in place, start adding in the details. Here are some points to remember:
▢ Be thorough with information on dates, payment amounts, and service descriptions.
▢ Sections like “parties involved” only need basics like names and addresses, but more precision is beneficial for service details, payment, and delivery terms.
▢ Take extra care here to ensure accuracy and clarity, as this sets expectations for both parties.
Finally, your contract should have dedicated spaces for each party’s signature, printed name, and the signing date.
Leave these spaces open until both parties are ready to finalize the agreement, as clients may have questions or requests for minor adjustments. Once both parties are happy with the terms, signatures seal the deal.
While optional, having a legal expert review your contract adds a layer of assurance. They can provide feedback on language that may need tightening or suggest additional terms to protect your interests.
Many online services offer affordable contract reviews, which can save headaches later by ensuring legal soundness.
Emailing a PDF works, but using e-signature tools can simplify things for you and your client. These platforms, like DocuSign or PandaDoc, make it easy for clients to sign digitally and provide extra features like reminders, audit trails, and editing options.
Your client may have questions or ideas for minor changes to the contract. Be ready to discuss these collaboratively, balancing flexibility with your non-negotiable terms.
Once you both agree, finalize the document with signatures, and congratulate yourself—the new partnership is sealed! If the deal doesn’t go through, thank the prospect for considering your services, and keep the door open for future opportunities.
Crafting a tailored sales contract is not a formality. It’s essential to establish clear expectations and protect both parties’ interests.
From choosing the right contract type to customizing clauses and getting expert insights, a solid contract makes a professional impression and builds trust in your partnership.
By following these steps, you’re setting up your business for success in every deal, creating a roadmap for smooth, mutually beneficial agreements.