Sales Agreement and Distribution Agreement

An international sales agreement is enforceable. However, there are some important things that need to be handled by an experienced contract lawyer.

This may involve considering dispute resolution clauses, the law governing the contract, due diligence on the other party and any security, retention or guarantees that may be needed.

Enforcing an international sale agreement can be complex, and enforcement steps may vary depending on the circumstances. Consulting with our experienced lawyers will ensure that you have the best chance of enforcing your agreement.

The price of a sales contract template or a sales contract that is specific to a supplier or client will depend on a number of things. For instance, the length of the agreement, price adjustment review formulas, and whether the sales contract is just for goods or goods and services. In general, Prosper Law’s clients pay between $950 to $3,500 plus GST for a sales contract template.

A distribution agreement is a type of contract between a supplier or manufacturer and a distributor. It outlines the terms under which the distributor sells and distributes the supplier’s products. The agreement typically includes details such as the rights and obligations of both parties, and the territory in which the distributor can sell the products.

A distribution contract will also address pricing and payment terms, the duration of the agreement, and any exclusivity or non-compete clauses.

In sales contracts, there are several common terms and conditions that typically appear. Some of these include:

• The names and contact information of the buyer and the seller.
• A description of the goods or services being sold, including any specifications or requirements.
• The price and payment terms and how the seller will receive payment.
• The delivery date, shipping method, and any applicable shipping costs or responsibilities.
• Any warranties or guarantees provided by the seller regarding the quality, performance, or condition of the goods or services.
• A description of when title and risk passes to the buyer.
• How defective goods are dealt with.

The specific terms and conditions in a sales contract will differ in each contract depending on the arrangement. Talk to our sales contract lawyers for advice on the best terms for your business.

It is not mandatory to register goods on the PPSR. However, registering a charge on the PPSR gives you additional rights. For example, you will be entitled to recover the goods if a buyer goes insolvent, and your rights in the goods are officially recorded on a public register.

If you have a long-term supply agreement, it is important that you are able to adjust the price of goods. You can address this in several ways. For instance, the sales contract may include a formula that is triggered by currency exchange rate fluctuations or commodities price benchmarks.

A price adjustment clause may also be triggered if your costs to purchase or transport goods increase.

Our contract lawyers recommend listing the agreed express warranties within the contract itself. However, if implied warranties apply (for instance, because of the Australian Consumer Law), the written agreement needs to be consistent with those warranties. An experienced contract lawyer can manage this in the contract terms.

Unfair contract terms law may apply to a sales agreement. If unfair contract terms apply to your arrangement, it may be necessary for you to negotiate the terms of your sales agreements. This will help to show that the parties involved were able to put forward changes. An example of an unfair contract term is where a seller expressly disclaims liability for defective goods and the buyer is a small business.