What is a Sales Contract used for?

At the beginning of a new export shipment order, the seller will prepare and send a Sales Contract (instead of a Proforma Invoice) to their buyer to confirm the order details and typically request a deposit payment. In the global trade process, the exporter will usually require a deposit payment to confirm the order and start manufacturing the goods. A common example is a 30% deposit payment up front, and the 70% balance payment after the goods have been produced or shipped (the specific terms to be negotiated and agreed upon between the buyer and seller). Note that Sales Contracts are issued pre-shipment, i.e. before the goods have been produced or delivered. Once the contract has been signed and the goods have been produced and are ready for shipment, sellers will request the balance amount to be paid.

How to create a Sales Contract

1. Open IncoDocs

   Open IncoDocs in your browser and navigate to the 'Invoices' section.

2. Create a new Sales Contract

   Click on 'New Invoice' and select the Sales Contract from the dropdown menu.

3. Fill out & customize your doc

   Fill out document info, customize document fields to your needs and add your company letterhead. If you use Xero or Quickbooks Online, you can also connect your account and autofill data from invoices or quotes in your accounting system.

4. Sign & seal

   Click on the signature box at the bottom of your document to create and place a digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add company seal” to place a digital stamp.

5. Download or send

   Download or share invoices from IncoDocs in 1-click. You'll know when recipients have viewed your invoice and recipients can even pay the invoice online via credit card for convenience.

Create in IncoDocs

Your questions, answered.

How does a Sales Contract work with a Purchase Order?

A Sales Contract is typically issued by the seller upon receiving a Purchase Order from a buyer. These are important documents that are used to officially confirm all order and product information to avoid any confusion or problems with the supply and delivery of products. Any additional information agreed upon between the buyer and seller can be included on these documents.

Both parties will have to counter-sign each document as they represent a legally binding agreement between the buyer and seller. If there are any disputes relating to the order or supply of goods, these documents will be referred to in a court of law. Read how importers and exporters digitally countersign Proforma Invoices, Purchase Orders and other Sales Contracts

What information is included on a Sales Contract Document?