Sales Agreement

Sale Agreement

Before anything else, let us have a brief discussion and overview on what sales is. In accounting, a sale is a transaction between two parties whereby one party receives goods or services from another party in exchange for money. It is also called revenue. You may also see service agreement samples.

Sales Agreement Template

sales agreement template
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Sales Contract Agreement

sales contract agreement template
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IP Sale Agreement Example

ip sale agreement template
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Bulk Sale Agreement Example

bulk sale agreement template
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Conditional Sale Agreement

conditional sale agreement template
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Restaurant Sales Agreement Example

restaurant sales agreement
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Property Sale Agreement Example

property sale agreement template
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Sales Employment Agreement Sample

sales employment agreement template
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Exclusive Importation and Sales Agreement

exclusive importation and sales agreement template
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Exclusive Solicitation Sales Commission Agreement

exclusive solicitation sales commission agreement template
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Asset Transfer and Sale Agreement Template

asset transfer and sale agreement template
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Vehicle Sale Agreement Example

vehicle sale agreement template
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Example Agreement of Purchase and Sale of Business Assets

agreement on purchase and sale of business asset
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When Do We Recognize Revenue?

Revenue is recognized when realizable or realized and earned regardless of when the cash is received. Take note that you can already record revenue even when you have not yet received the corresponding cash; similarly, you can never record revenue even if you already received the cash but have not yet earned the revenue.

So when is revenue earned? According to the Conceptual Framework, revenue is earned when it is probable and measurable that economic benefits will flow to the entity and it can be measured with reliability. Probable means that an event is more than 50% likely to occur. Measured means that the quantity rising from the said event can be quantified. Reliability means the degree to which the information can be depended on and being trusted to be accurate.

What Is the Difference Between Sales, Revenue, Gain, Income, and Profit?

At first glance, sales, revenue, gain, income, and profit may seem similar to us. However, there are few differences of these terms. We will take a quick peek at their comparison.

As per accounting, sales tantamount to revenue. Revenue is the amount earned by an entity through its main activities or operations, for example, from goods or services.

Income and profit are terms that can be used interchangeably. Income means the remaining amount after deducting expenses from the revenue. Common types of expenses are cost of sales or cost of goods sold, administrative expense, and operating expenses.

On the other hand, gain is the amount earned by an entity from activities other than its main operation, for example, sale of company scraps or desks. Observe that this is the amount received not from the ordinary course of operation from the entity.

What Is a Sales Agreement?

According to Philippines Sales Agreement, a sales agreement, one of the business agreements, similar to a Bill of Sale, is used to document a transaction of greater than $500 between a buyer and a seller.

It provides information regarding the purchase of an asset—time and place of the purchase, purchase price, method of payment, shipping terms, etc. It also contains stipulation regarding the purchased items.

Sales agreement is also called sales contract or agreement to sell.

What Is the Purpose of a Sales Agreement?

To establish your rights and obligations

In a sales agreement, similar to most of the commercial agreements, buyers and sellers should make stipulations regarding the terms and conditions of the sale, for example, the shipment.

The usual terms related to shipping goods are as follows:

To know the consequences of risks related to the goods or services

Risk of loss is the most common risk that a good in transit will face. What do you mean by risk of loss? In simple and layman’s term, it is the risk that a good might be lost. In accounting, it is a term used to determine which party should carry the risk for damage to the goods after the sale has been completed, pending delivery.

According to the Uniform Commercial Code, the general rule is that the loss of the goods falls upon the person who has the “title,” that is, upon the person whose goods they are res perit domino, the thing is lost to the owner.

The “title” passes:

However, there are also exceptions to the rules:

To be informed of the remedies and protection by the law

When parties related to the sale of goods agreed to the terms and conditions in a contract, the contract is binding in court provided they are not contrary to law, morals, customs, public order or public policy. A party not living according to the agreed terms and condition may said to have breached the contract and is liable in court. Other remedies and protection by law available may be fully discussed by the people implementing the law.

Usual Content of a Sales Agreement

Below are the usual contents inside a sales agreement:

Common Stipulations to be Included in a Sales Agreement

Sales Agreement Samples

The above topic briefly discusses the sales agreement as a whole as well as the contents and important things to consider in making a sales agreement. But if you are looking for a sample or a template for the sales agreement, consider the following samples presented below.

Agreement for Sale of Lots

lot sales contract 1
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  • PDF

Size: 152 kb

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Business Sales Agreement

business sales agreement pdf template free download 01
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  • PDF

Size: 41 kb

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Commercial Business Purchase Agreement

commercial business purchase agreement 01
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  • PDF

Size: 81.8 kb

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Consignment Sales Agreement

consignment sales agreement pdf template free download 1
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  • PDF

Size: 39.7 kb

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Motor Vehicle Sales Agreement

motor vehicle sale agreement free download in pdf 1
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  • PDF

Size: 6.5 kb

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Product Sales Agreement

product sales contract 1
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  • PDF

Size: 71.5 kb

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Residential Real Estate Sales Agreement

residential real estate sale agreement word free download1 1
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  • DOC

Size: 51.7 kb

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Used Car Sales Agreement

used car sales agreement pdf template free download 1
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  • PDF

Size: 16.5 kb

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Vehicle Sales Agreement

vehicle sales agreement 1
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  • PDF

Size: 74 kb

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Real Estate Purchase Contract

real estate purchase contract 1
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  • PDF

Size: 102.3 kb

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