Issues to be considered when establishing conditions of sale include:
Purpose – will they be used as a quotation, sales confirmation, on the back of an invoice, a credit application or as a stand-alone document
Price – specify if the price includes taxes, freight, shipping insurance, installation and allow for price changes
Payment terms
Ordering – including delivery dates and procedures around changes, delays and cancellations
Exclusions – specify any parts or accessories not included in the purchase price
Installation, commissioning and testing
Shipping terms
Sales tax and GST
Inspection of goods on receipt – damage claims are usually filed within 7 days
Return of goods – specify a procedure
Insurance and liability
Warranty
Other issues that may be relevant include protection of intellectual property, storage specifications, severability and stating the legal system that will govern the contract.
Each company will face different issues. Think about the things that could go wrong and get input from marketing, operational and financial executives before finalising your conditions of sale.
