Sale Terms And Conditions

Sale terms and conditions are guidelines entrusted to the parties involved in a sales transaction of goods or services. The sole purpose of this document is to inform the parties of their rights, duties, and obligations when agreeing with other parties.

On acceptance of a product or service for a consideration (amount), parties are bound by these terms and conditions. They detail the product features, pricing, payment terms, returns and exchanges, and shipping charges. However, any breach of the terms and conditions can lead to legal action against the accused for the party that has suffered damages.

Sale terms and conditions refer to rules and regulations that outline the sale transaction between the buyer and seller. It details the terms and conditions that apply to selling or purchasing goods from a seller. So, if a person buys a car from a dealer, the latter may present these terms when signing the sales contract. It intends to create awareness among the buyer and seller on the goods and services traded and how they are liable for any damages occurring under certain conditions.

Sellers mostly add these terms to protect their interests and avoid any misunderstandings with the customers. It communicates the rights and obligations buyers receive along with the product. At the same time, even buyers can read these terms before making any purchase. Any negligence on their part can result in severe penalties. For instance, if a product has a warranty of 2 years but the buyer demands replacement after 3 years, in that case, the seller is not liable for any damages. In short, the buyer has to bear the expenses. Likewise, even buyers have similar rights when engaging with the seller. They have the right to receive goods, reject non-conforming goods and seek damages for breach during the transit.

In this era of digitalization, the sale terms and conditions are crucial in most products and services traded online (through e-commerce sites and company websites). These either appear as hyperlinks during the checkout process or as separate documents. Hence, reading these terms and conditions before agreeing to purchase can address future events beyond one's control.

The sales agreement has various rules and regulations listed, but every seller may have some variations. However, the sale terms and conditions template for most remains the same. Let us look at the general terms included in the agreement:

• Notice: It details the buyer’s consent (approval) to the terms and conditions presented in this document. In short, it acts as a small disclaimer for the buyer when agreeing to the terms. Also, it mentions that no buyer owns the right to modify or waive these terms during the transaction. 
• Definitions: This section describes the meaning of certain terminologies included in this template. It consists of definitions like buyer, seller, contract, contract price, products, and general terms and conditions. 
• Delivery and shipping terms: It refers to the delivery process of products from the seller to the ultimate buyer. This section includes the place of delivery, charges involved, party obliged to pay the charges, and delivery time. Additionally, it describes the situation when the product delivery becomes unsuccessful or gets wrongly delivered to someone else. 
• Cancellation of purchase order: Any cancellation of the item purchased may create certain liabilities for the buyer. It depends on the seller whether cancellation accounts for charges or not. 
• Inspection and acceptance of goods: When goods reach the delivery location, the buyer must check and inspect the goods before acceptance. This check must also include looking for damages and defects to avail compensation for damages or product replacement. 
• Title and risk of loss: On delivery, the ownership and title of the goods will switch to the buyer. However, this risk of loss and title stays with the seller unless the buyer accepts the goods. 
• Payment terms: It mentions the payment modes acceptable from the seller’s side. Also, the seller may state the payment terms (number of days) and currency acceptable for the product purchased. Additionally, any late payments may attract penalties or fees, as mentioned by the seller. 
• Contract price: It refers to the agreed price for the sale transaction between the seller and buyer. 
• Disclaimer of warranty: The disclaimer of warranty provided by the seller covers the repairs and damages caused (in certain conditions) within a stipulated time. It also includes other terms regarding the same, which may differ from seller to seller. 
• Limitation of liability: This section limits the amount of money (or any damages) that one party can recover from the other for breaches or performance failures. 
• Termination: In sale terms and conditions, termination refers to the exit of the contract between the parties. On a certain date, this agreement may also end (terminate) upon any breach or discontinuation of the relationship between buyer and seller. 
• Other terms and conditions: In addition to the above terms, the seller may include other terms and conditions as well. It solely depends on the situation, type of product traded, and other provisions. 

Let us look at some examples of how seller incorporate sale terms and conditions in their businesses:

Example #1

Suppose John owns an electrical business of lighting, board switches, and other appliances. It has been more than five years since he started this business. Kevin, his neighbor, decided to buy some tube lights and switches for his renovated house. After negotiating and packaging the product, the contract price touched $1000. On making the final payment, John presented the terms and conditions to Kevin. Since the product was electrical and may face any disruption, John felt it safe to protect his interests. Also, he provided a warranty card of 1 year to Kevin as an added benefit.

Example #2

In the same context, such terms and conditions are also common on e-commerce sites like Amazon, Walmart, or any other major brand. For example, Amazon sale terms and conditions operating in the United Kingdom include terms like the buyer agrees (or gives consent) to receive sales invoices electronically and in PDF format. Likewise, the right of cancelling orders from the buyer’s side is 14 days. However, it is important to communicate this sentence to the Amazon center before the time mentioned. 

Sale terms and conditions play a pivotal role in the sales process. It allows the buyer to understand the sale transaction more deeply and its liabilities. Likewise, it provides enough information about the product, payment terms, and delivery before actual acceptance. By agreeing to the terms, the parties protect themselves from any contingent liability (occurring in the future). In contrast, if there is any arising dispute among the parties, these terms and conditions already address the problem in advance. However, it must be well-drafted to avoid any misunderstandings between the parties and help bring clarity to the buyer regarding their rights and obligations.