Sales Contract

A Sales Contract is a legally binding written agreement between the buyer and the seller in international trade for the sale and purchase of goods. It is usually drafted by the seller and sent to the buyer for confirmation. It specifies in detail the name of the commodity, specifications, quantity, unit price, total price, packing, port of shipment/destination, time of shipment, terms of payment, insurance, inspection, claims, force majeure, and arbitration, etc. Usage scenarios include: bulk commodity transactions, customized products, long-term cooperation orders, etc. Points to note: the contract terms must be strictly consistent with the letter of credit, avoiding soft clauses; clarify trade terms (such as FOB, CIF) and the point of risk transfer; it takes effect after both parties sign and seal it. Unlike a Proforma Invoice, which is only used for quotation or applying for a letter of credit and has no legal binding force; compared with an Order, a Sales Contract is more formal and has more complete terms. It is the opposite perspective from a Purchase Contract, but has the same legal effect.