When operating a business, you will probably enter into several contracts. One of the most essential of these types of agreements is for the sale of goods or services. These contracts can be used for everything from buying and selling merchandise and supplies to acquiring business-related equipment. If you are operating a Florida business, it’s important to know what to include in your sale of goods contract.
Florida Sale of Goods Contracts Should be in Writing
In Florida, a sale of goods for over $500 must be in writing to be enforceable. Therefore, depending on the size of your transaction, it may be necessary to have a contract. Even if your sale of goods is for less than $500, it’s generally advisable to have a written contract. That way, both parties will understand the agreement terms, and there will be less room for ambiguity.
Using the Right Language
A well-drafted sale of goods contract can help you avoid frustration and inference with your business operations. The best way to ensure that your agreement is written in a way that protects your interests is by working with an experienced small business attorney. After meeting with your business lawyer, you can develop terms that are suited to your particular agreement and needs.
Your Sale of Goods Contract Terms
When it comes to a sale of goods contract, your agreement will only be effective and enforceable if you use the right terms. Therefore, when developing your contract language, you should consider including the following:
The parties—a clearly phrased paragraph defining the parties and their roles in the transaction.
The subject of the transaction—language that describes the good or service being sold.
The payment term—a provision that sets out how much one party is paying the other for their goods or services and when payment is due.
The date or time frame—a term that makes evident when the good or service will be provided or delivered.
Getting the Details Right
You may have heard the old saying that “the devil is in the details.” When it comes to contracts, nothing could be more accurate. How you express your agreement and its details matter, and it’s important to be selective in your use of certain terms and phrases. If you are not careful, you could end up using language contrary to your business interests or that is unenforceable. Your business attorney can help you draft language that protects your interests and supports your goals.
Considering Warranties
When entering into a sale of goods contract, the seller will be making certain representations regarding the suitability of its product. As a buyer, you will want to ensure the correct warranty language is in your agreement. As a seller, you will want to ensure that the warranties are written in a manner that protects your interests.
Thinking About Potential Breach
Generally, parties enter into sale of goods contracts intending for everything to go as planned. However, events and circumstances can occur that may delay or prevent a party from complying with a contract term. For instance, suppose a seller and buyer have an agreement for the seller to provide computer component parts by a certain date. However, due to supply-chain issues, the seller cannot provide all of the order. This is a breach of the agreement that may negatively impact the seller. Numerous factors can impact a party’s ability to fulfill their side of an agreement. Some of which may be foreseeable. If you can anticipate the possible issues ahead of time, you may be able to add terms that address them and potential breaches.
Contact an Experienced Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.