A sales contract is an important document to have in court.
According to "Black's Law Dictionary," a sales contract is a "contract in which ownership of property is transferred, or will be transferred, from a seller to a buyer for a fixed sum."
Governing Law
The Uniform Commercial Code governs all contracts for the sale of goods.
History
The American Legal Institute developed the Uniform Commercial Code in 1951. It has since been revised numerous times.
Benefits
A valid sales contract gives you a better chance at recovering damages in the event the contract is breached. If not required by law, it is recommended that a written contract or receipt be provided to the court as evidence of the existence of the contract.
Requirements
According to the Uniform Commercial Code, sales contracts must state the quantity of the goods to be sold.
Considerations
The Statute of Frauds requires that all contracts for the sale of goods greater than $500 be in writing. For such a contract, the writing must be signed by the party for which enforcement is sought, must state the quantity of goods and the names of the parties.
