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On Sales Contract

The document outlines the importance and key elements of a sales contract, which serves as a preliminary step for a Master Letter of Credit. It emphasizes clarity, legal protection, and prevention of miscommunication between buyers and manufacturers, detailing necessary components such as identification of parties, description of goods, delivery specifications, and payment details. Additionally, it describes two types of sales contracts: general and conditional, and provides a sample sales contract with specific transaction details.

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43 views6 pages

On Sales Contract

The document outlines the importance and key elements of a sales contract, which serves as a preliminary step for a Master Letter of Credit. It emphasizes clarity, legal protection, and prevention of miscommunication between buyers and manufacturers, detailing necessary components such as identification of parties, description of goods, delivery specifications, and payment details. Additionally, it describes two types of sales contracts: general and conditional, and provides a sample sales contract with specific transaction details.

Uploaded by

asraful064monayem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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SALES CONTRACT

Sales contract is preliminary step


of Master LC – (Letter of Credit).
Sales contract is a deed between
buyer and manufacturer.
Author of sales contract:
Merchandiser
Why you need a sales contract?

 Promotes clarity/transparency
A sales contract brings clarity/transparency to both the seller and the buyer. With the
document laying out all the details, neither party has to contend with the ambiguities.
They’ll know exactly what to expect from the other party and how to fulfill their obligations.
 Provides legal protection
With the contract providing clear language for proper execution, the parties are less likely to
get into a legal dispute. And if disputes do arise, the agreement will tell the parties exactly
how to handle them.

 Prevents miscommunication
One of the main purposes of a contract is to define the relationship between parties. This
helps prevent any miscommunications that can strain the relationship. You won’t get all
these benefits if your contract is riddled with loopholes. Missing a crucial aspect in your
contract can nullify it. So, let’s talk about the elements you must include in your agreement.
The key elements of Sales
contract

 Identification of parties/Buyers
The contract must clearly specify the parties/Buyers involved in the transaction. For example,
the agreement may identify a company as the seller even if an agent has been negotiating on
their behalf. This way, the buyer knows who exactly is legally bound by the agreement.
 Description of goods
A sales contract must contain detail description of goods, Like Knit or Woven specifically
mention, also mention gender like, Boyes, girls, also mention it is trouser , or shirt etc.
 Delivery specifications
Sales contract must also be specific with the delivery instructions. Clearly indicate the dates of
delivery, location details, and who shoulders the risk of loss or damage while the goods are in
transit.
 Payment details
More than just mentioning the price of the goods or services, the sales contract must also
clarify the payment terms( CTG 75 days TT payment, or 30 days TT payment or at sight
Payment). It should indicate crucial details like the agreed payment method, schedule, and
interest charges. That way, you can seek legal remedy if the other party fails to fulfill their
obligation.
Types of sales contract

Generally two types of sales contract


 General sales contract
General sales contracts are the most used type of sales agreement. They cover all
the necessary elements without honing on details that are specific to certain types of
transactions. For example, those offering services like marketing consultancy and
copywriting, or goods like raw materials for clothing production or catering services.
 Conditional sales contact
Conditional sales agreements are just like general sales contracts, except that they
contain additional stipulations. You’ll need this in transactions where a buyer already
has the product but does not own it yet. They’ll only earn full rights to the product
once they’ve fully paid for it. Essentially, the agreement stipulates that the seller
retains all rights to the asset until the buyer completes payment for it.
For example
John Lewis plc
171 Victoria Street, London, SW1E 5NN
United Kingdom

SALES CONTRACT

Contract No AGDL/JL-01/2024 Date: 22-Jan-24

Shipper Name & Address: AMAN GRAPHICS & DESIGNS LTD


NAZIM NAGAR, HEMAYETPUR,
SAVAR, DHAKA
BANGLADESHTEL – 880-2-7741428
FAX NO.-88-02-7741428

Shipper's bank/Consignee Bank Details : DHAKA BANK LTD


MOHAKHALI BRANCH
100, BIR UTTAM A.K KHANDAKAR ROAD
MOHAKHALI, C/A-1212
BANGLADESH
PHONE NO- 02-9886376, 02-9882914-15
FAX NO- 02-98828910
SWIFT NO- DHBLBDDHMKH
CD Account Number: 2251000002394

Buyer's Name and address : John Lewis plc


171 Victoria Street, London, SW1E 5NN
United Kingdom

Buyer's Bank Name and address : JPMORGAN CHASE BANK NA


1 CHASESIDE
BOURNEMOUTH
DORSET, BH7 7DA
UK
ATTN GLOBAL TRADE MAIL CODE HB01-0365
SWIFT CHASGB2L
Month Wise Order QTY
Pcs per Total Qty.
Style # Description Jan Feb Mar Apr May June july Aug FOB Total FOB SHIPMENT DATE
Unit (Pcs)
LB-7-0475-KHAKI Boys Woven Trouser 0 0 599 0 0 499 499 0 1 1597 $7.70 $12,296.90 23-Mar-24
LB-7-0475-STONE Boys Woven Trouser 0 0 599 0 0 399 399 351 1 1748 $7.70 $13,459.60 23-Mar-24
LB-7-0475-NAVY Boys Woven Trouser 0 0 798 0 0 599 499 451 1 2347 $7.70 $18,071.90 23-Mar-24
LB-8-0332-AW24 Boys Woven Shorts 0 0 700 0 0 700 500 451 2 4702 $12.65 $29,740.15 23-Mar-24
TOTAL 0 0 2696 0 0 2197 1897 1253 10394 $73,568.55

Say Amount : seventy-three thousand five hundred sixty-eight and fifty-five cents only
Thank you

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