Negotiating a Sale

8. Contract Issues

A contract exists whenever two parties agree to a deal. Verbal contracts are legally binding, but difficult to prove in court.

8.1 If the deal is important, consider taking legal advice.

• Get a free quote from a solicitor. Balance legal costs against the value of the deal.

8.2 If you have a written contract, make sure it expressly refers to your terms of trade. Get the customer to agree to your terms and conditions at the start.

Common clauses include:

• Details of price, payment dates, payment method and delivery.
• Guarantees covering a limited period.
• A clause allowing you to retain legal ownership of the goods until fully paid for.
• A clause giving you the right to delay delivery due to circumstances beyond his or her control.
• Clauses limiting your liability (taking into account the buyer's statutory rights).

8.3 Document each stage of the negotiations.

• Even if there is no written contract, notes you made at the time may be acceptable as evidence if you have to go to court.