Terms and conditions between a buyer and seller are the legal terms that govern the exchange of goods or services. These terms may include definitions, delivery terms, cancellation policies, and more.
Common terms and conditions
- Compliance with laws: The buyer is responsible for ensuring that the goods comply with all applicable laws and standards.
- Liability: The seller may include a limitation of liability clause to limit the amount of damages they are responsible for paying.
- Delivery: The terms of delivery and shipping are agreed upon.
- Inspection: The buyer may have the right to inspect and reject goods that are damaged, defective, or not as ordered.
- Cancellation: The terms for canceling a purchase order are agreed upon.
- Types of agreements
- Sales agreementA contract between a buyer and seller that details the terms of an exchange.
Sales and purchase agreement (SPA) - A binding legal contract that obligates a buyer to buy and a seller to sell. SPAs are often used in real estate deals.
Agreement to sell - An agreement that states the legal terms and conditions between a buyer and seller.