The Contract or Sales & Purchase Agreement (SPA) is the agreement between the seller and buyer on the transaction in all details. Therefore, a signed contract is a legally binding agreement between the seller and the buyer. The seller must supply under the specified price and terms, and the buyer must equally buy at the price and terms.
Moreover, each party is entitled to ask for compensation from the other party if the contract is not executed according to each party’s obligations. The contract might specify the compensation for each party under different conditions or it might be also up to the court of law to decide which compensation will be suitable in the case of one party not complying with the requirements outlined in the contract.
A valid Contract must as minimum include:
- Issuing date
- Validity in time
- The seller identified by name, full address, company registration number, and contact information
- The buyer identified by name, full address, company registration number, and contact information
- Full and detailed specification of the product
- Contract Quantity
- Shipping terms
- Payment terms
- Also any other mandatory terms