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Terms of Sale and Delivery

Written terms of sale and delivery are seldom statutory, but it is advisable to work out such documentation

If you write terms of sale and delivery it means that you minimize the risk of problems and disputes in the future.

Forwarding sales and delivery terms is a service to the company´s customers thus informing them under which conditions they are doing business. It enables them to back out if they do not agree to the terms.

Dealing within the family network you might not be able to make any terms, but try to specify the terms of sale and delivery as precise as possible. It is very easy to misunderstand each other.

The terms of sale and delivery could contain the bellow steps:

Visibility

Terms of sale and delivery can be mailed out along with promotion material, but a customer must, at the latest, be informed of such terms when the agreement is made and they must be included in the agreement.

It must be stated in the terms of sale and delivery whether it is an estimate or an quotations. The burden of proving that terms of sale and delivery was part of the agreement lies normally with the seller.

Thus, it is crucial to obtain the customer´s confirmation of the existence of such terms.

1st Estimate

A sales pattern could be that the customer receives an estimate of a given assignment. An estimate is a rough specification and maybe a price calculation of an assignment.
It must appear from the estimate that it is nothing but an estimate. It is important that the customer knows that what s/he has received is an estimate, as estimates are not binding.

2nd Quotation

If the customer finds the estimate attractive, he may request a quotation. Making a quotation is binding to the offer for a specified period. Specification of period may appear from the quotation.
Alternatively, trade customs may stipulate that quotations are binding for a specific period.

3rd Order Confirmation

To be sure that your deal is home and dry you need to have your customer return a specified and signed order confirmation – and, if required, a signed copy of the terms of sale and delivery.

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