When you're striving to maintain a smooth sales process, a well-structured sales contract can be your best friend.

A sales contract outlines the terms of a sale between the seller and the buyer. It defines the product or service to be provided, the pricing, and any terms and conditions.

But creating these contracts can be a hassle - that's where a sales contract template can come in handy.

What is a sales contract?

A sales contract, also known as a "sales agreement," "purchase agreement," or "sale of goods agreement," is a legal agreement between a buyer and a seller.

It outlines the details of a transaction, including the price, description of the goods or services, delivery logistics, and payment details.

Having a detailed sales contract is essential to ensure that both parties understand their obligations and rights, preventing any misunderstandings or disputes down the line.

When should you use a sales contract template?

You would use a sales contract template when you're selling or buying goods or services. Whether you're an individual, small business owner, or part of a large corporation, having a clear, concise sales contract template can help streamline the sales process and save valuable time.

Who is responsible for creating and managing sales contracts?

The creation and management of sales contracts involve several key players, spanning various teams within an organization.

1. Sales teams

Sales teams are usually responsible for initiating the sales contract. They draft the preliminary terms based on their interaction with the customer and the company's sales guidelines.

Once the contract is executed, they monitor its execution, ensuring all obligations are met by both parties.

2. Legal teams

Legal teams typically review and refine the initial draft prepared by the sales team, ensuring it's legally sound and protects the company's interests.

Post contract creation, they regularly review the contract for compliance with any changing laws and regulations, mitigating potential legal risks.

3. Contract managers

In larger organizations, there will be dedicated teams oversee the administration of contracts, ensuring deadlines are met, and managing renewals or terminations appropriately. These are known as contract managers and contract administrators.

4. Finance teams

Finance teams are usually involved in managing the financial aspects of the contract, such as ensuring timely payments and handling any financial disputes.

What should a sales contract template cover?

We've explored what sales contracts are and who manages them. But what should a sales contract actually include? Well, there are a few important components for a sales contract template to cover.

1. Identification of Parties: The full names and contact information of both the buyer and seller should be clearly stated. This establishes who is involved in the agreement and responsible for fulfilling its terms.
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2. Detailed Description of Goods or Services: The contract should specify what product or service is being sold. This includes any relevant specifications, quantities, models, colors, sizes, or other pertinent details. The more detailed the description, the less room there is for misunderstanding.
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3. Pricing and Payment Terms: The contract should clearly state the total price of the goods or services and any applicable taxes or additional fees. The payment terms should detail how and when the buyer will make the payment. If there are installment plans or specific payment methods, these should be clearly outlined.
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4. Delivery Terms: The contract should specify when and where the goods will be delivered or when the services will be provided. If there are any shipping or delivery charges, they should also be clearly stated.
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5. Risk of Loss: This clause determines who is responsible if the goods are damaged or lost during transit. It should outline when the risk transfers from the seller to the buyer.
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6. Warranties and Guarantees: If there are any warranties or guarantees offered with the product or service, they should be explicitly stated in the contract.
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7. Dispute Resolution: The contract should specify how any disputes between the buyer and seller will be resolved. This could include negotiation, mediation, arbitration, or litigation.
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8. Termination Conditions: The contract should specify under what conditions the contract can be terminated by either party. This could be due to a breach of contract, non-payment, or other stipulated scenarios.
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9. Confidentiality Clause: If the transaction involves sharing sensitive information, the contract should have a confidentiality clause to protect both parties.
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10. Governing Law: The contract should state which jurisdiction's laws will be used to interpret the contract and handle any legal disputes that may arise.

How are sales contracts usually managed by businesses with a manual workflow?

In many businesses, sales contract management can be a complex and time-consuming process, especially when managed manually. Here are the main steps involved and the associated challenges:

1. Contract drafting

The initial step involves creating the contract, usually based on previous contracts or generic templates. This manual process can be time-consuming and error-prone, and often requires legal expertise to ensure accuracy and compliance.

2. Review and negotiation

The draft contract is then reviewed by various stakeholders, including legal, finance, and management teams.

Changes are communicated via email or track changes in word processors, which can lead to confusion, miscommunications, and a prolonged negotiation phase.

3. Contract approval and signing‍

‍Once the contract is finalized, it needs to be approved by the necessary parties and then signed. Without a centralized platform, tracking approvals can be difficult and lead to delays. Similarly, manual signing processes can be slow and inconvenient for parties that aren't local to one another.

4. Secure contract storage

The signed contract needs to be stored safely, and key dates and obligations must be tracked. In a manual system, contracts can be lost or forgotten, leading to missed obligations or opportunities for renewal.

5. Post-signature management

This involves tracking performance against the contract, resolving disputes, and managing renewals or contract terminations. Without a centralized, automated system, this can require significant time and resources.

Why is this process painful for sales and legal teams?

There are a few aspects of the process we just described that lead to broken contract processes for sales teams.

The common pain points associated with a manual sales contract management process include:

• Time-consuming: The manual creation, review, approval, and management of contracts can take up significant time, slowing down sales cycles and impacting efficiency.
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• Prone to errors: Manual processes are inherently susceptible to errors, which in the context of contract management can lead to legal issues or lost revenue.
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• Lack of oversight: Without a centralized system, it can be difficult to maintain visibility over the contract lifecycle, leading to missed deadlines, unfulfilled obligations, and lost opportunities.
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• Inefficient Collaboration: Manual and disjointed systems can hinder effective collaboration between teams, prolonging the contract lifecycle and leading to internal miscommunications and inconsistencies.
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• Poor Security and Compliance: Storing contracts in physical form or in disorganized digital folders can jeopardise data security. It also makes it more difficult to ensure compliance with privacy laws and internal policies.

To overcome these challenges, businesses are increasingly turning to automated contract lifecycle management (CLM) platforms like Juro, which streamline the contract management process, enhance collaboration, reduce errors, and provide better oversight and security.

Let's explore how Juro can transform this process for sales teams like yours.

Automate sales contracts with Juro

Juro's flexible, collaborative and data-rich contract management software aims to address the pain points of traditional, manual sales contract management processes.

It is designed to streamline and simplify every stage of the contract process, making it more efficient, collaborative, and user-friendly. Here's how Juro can revolutionize your sales contract management:

1. Automated contract creation

With Juro's intuitive contract editor and customizable templates, drafting contracts becomes significantly faster and easier. The platform uses machine learning to automate routine tasks and reduce human error, speeding up the contract creation process and freeing up your team's time for more valuable tasks.

2. Real-time collaboration and negotiation

Juro allows multiple stakeholders to work on a contract simultaneously in real-time, enabling smoother collaboration and reducing the back-and-forth communication often associated with contract negotiations.

The platform keeps all communication in one place, making it easier to track changes and maintain a clear audit trail.

3. Digital approval and eSigning

Juro's digital approval workflows ensure that contracts are reviewed and approved by the right people in a timely manner. Once the contract is approved, parties can sign the contract digitally, making the process faster and more convenient.

4. Centralized contract repository

‍All contracts created and managed in Juro are stored in a secure, centralized repository, making it easy to find and access contracts whenever needed. This improves visibility and control over the contract lifecycle.

5. Automated reminders and renewals

With Juro, you'll never miss a key date or deadline again. The platform sends automated reminders for important dates such as contract renewals or end dates, ensuring you're always one step ahead.

6. Integrations with CRMs

Juro integrates seamlessly with a range of CRMs, including Salesforce, HubSpot, Pipedrive, Zoho CRM, Copper CRM and more.

These integrations enable you to pull deal data into your sales agreements automatically, with no manual data entry work required.

7. Advanced analytics

Juro provides in-depth analytics on your contract processes, giving you the insights you need to identify bottlenecks, improve efficiency, and make more informed decisions.

By implementing Juro, businesses can transform their sales contract management from a manual, time-consuming process to a streamlined, automated, and efficient one.

This not only saves time and reduces errors but also enables teams to focus on building relationships and closing deals, rather than getting bogged down in contract management.

To find out more about Juro, hit the button below to book your personalized demo. Alternatively, read this guide to CLM software for sales teams to find out more about how your reps can save time and reduce risk.