Many startups are finally taken over. What does this mean for your customers if you are acquired? The terms of the award determine in advance what happens to a sales contract if you are acquired. The contractual clauses discussed above are by no means exhaustive, but they are part of the common language of trade that should be included in your order form or sales contract. Negotiate these clauses from the beginning, reduce them to a letter and have the buyer sign your sales contract (sale order) before your business starts working as part of the sales contract or order. Your sales contract and order terms should expressly limit the damage to actual damage and expressly state that the purchaser is prohibited from recovering special, indirect, consecutive or punitive damages. While a sales contract and sales invoice have similar purposes, a sales contract offers a more detailed payment schedule and guarantees for the item. It also gives both parties more flexibility before the agreement is concluded by providing conditions to secure the goods before they are purchased. If you sell a product, it is likely that your company will guarantee that the product meets certain defined specifications and that it is free of hardware and processing errors. The first question when addressing the guarantees is what the guarantee time will be.
If the contract does not set a specific deadline, the guarantee period is generally set by state law, which generally provides for 4 years. However, you can limit this period to 6 months or 1 year in your sales contract or order terms. The second question with respect to warranties is the type of remedy you provide to the buyer in the event of a material error or treatment. You can expressly limit the repair, replacement or refund of the buyer`s purchase price for breach of warranty, net of the shipment and processing (if any). The third question is whether you can give the unspoken guarantees of market continuity and adequacy to a specific purpose or whether you can expressly exclude them from all unspoken guarantees.