Business Contract Template

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A Business Contract is used when you want to formalize an agreement between two or more parties in a professional setting. It clearly defines the terms, responsibilities, deadlines, and payment arrangements involved in a business relationship. You can create your own Business Contract on Loio and use the well-structured document to support partnerships, services, or transactions with confidence.
BUSINESS CONTRACT

This Business Contract for the sale of products/goods (the "Contract") is entered into on   (the "Effective Date") by and between  , an individual having their usual place of living at   (the "Seller"), and

 , an individual having their usual place of living at   (the "Buyer"), collectively referred to as the "Parties" and individually as the "Party".

SUBJECT MATTER OF THE CONTRACT. The Seller agrees to sell and convey to the Buyer, and the Buyer agrees to purchase from the Seller, subject to the terms and conditions set forth herein, the following item(s) (the "Object(s)"):

 

PURCHASE PRICE AND PAYMENT TERMS. The total purchase price for the Object(s) is   (the "Purchase Price").

The payment of the Purchase Price shall be exercised as follows:

  • In a lump sum. The Purchase Price shall be paid by the Buyer on the Effective Date of this Contract (the "Due Date").

All payments will be made in cash.

DELIVERY TERMS. The Seller shall deliver the Object(s) to the Buyer on or before  . The Objects shall be delivered to the Buyer's address specified in this Contract (the "Delivery Address").

The Seller shall deliver the Objects using the following delivery method:  . Any change to the delivery method must be agreed upon in writing by both Parties.

 

INSPECTION. The Buyer is entitled to inspect the delivered Object(s) promptly upon receipt. Any discrepancies, defects, or damages shall be reported to the Seller in writing within   days of delivery. The return of the defective or damaged Object(s) shall be made at the Seller's expense.

The Seller must eliminate the discrepancies, defects, or damages of the Object(s) or replace the defective Object(s) within   days from the date of return of the Objects by the Buyer.


WARRANTIES AND REPRESENTATIONS. The Seller represents and warrants that:

The Buyer represents and warrants that:

LIABILITY AND INDEMNIFICATION. Each Party agrees to indemnify, defend, and hold harmless the other Party from and against any and all claims, demands, losses, damages, and/or liabilities, including reasonable attorneys' fees, arising out of or related to any breach of this Contract or any negligent or willful act or omission of the indemnifying Party.

The Parties agree that each Party's total liability under this Contract shall be limited to the Purchase Price paid or to be paid for the Object(s), excluding any indirect, incidental, or punitive damages, unless otherwise prohibited by law.

The Parties agree to mitigate damages and take reasonable steps to minimize any loss or damage caused by any breach or default under this Contract.

Any Party seeking indemnification shall promptly notify the indemnifying Party in writing of any claim, demand, or action giving rise to an indemnification obligation. 

DEFAULT. The occurrence of any of the following events shall constitute a material default under this Contract:

In the event of default of one Party, the other Party may terminate the Contract by providing written notice to the defaulting Party. This notice shall describe the essence of the default. The defaulting Party shall have   days from the date of such a notice to cure the default. The failure to cure the default within the specified period shall result in the automatic termination of this Contract.

TERMINATION OF THE CONTRACT. This Contract shall commence on the Effective Date and shall continue until the date of transfer of the Object(s) to the Buyer unless terminated earlier following the terms of this Contract, but not before the Parties duly fulfill their obligations under the Contract.

Either Party may terminate this Contract without cause upon providing   days prior written notice.

This Contract may be terminated as specified in the Default clause of this Contract.

In addition, either Party may terminate this Contract immediately upon written notice to the other Party if the other Party becomes insolvent or files for bankruptcy.

 

NOTICE. Any notice or communication required or permitted under this Contract shall be sufficiently given if delivered personally or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one Party may have furnished to the other Party in writing, or to emails set forth below:

If to the Buyer:  

If to the Seller:  

Either Party may change the registered mail or email address for receipt of notices by giving written notice to the other Party. Notices shall be deemed received on the day of delivery if sent by hand or courier service or on the   business day after the date of posting if sent by registered mail or email.

FORCE MAJEURE. Neither Party shall be liable for any failure to perform or delay in performing the obligations under this Contract if such failure or delay is caused by events of force majeure, including but not limited to acts of God, war, terrorism, strikes, lockouts, labor disputes, pandemics, epidemics, governmental regulations, or any other similar causes beyond the reasonable control of the affected Party.

In the case of force majeure, the affected Party shall immediately notify the other Party in writing and provide reasonable proof of the cause of the delay or inability to perform the obligations. The Party affected by force majeure shall endeavor to mitigate the consequences of such circumstances and resume the performance of obligations as soon as possible after the circumstances cease to exist.

If the force majeure circumstances last for more than   days, either Party may terminate this Contract by giving written notice to the other Party. In this case, neither Party shall be liable to the other Party for any damages arising from the termination of this Contract. 

GOVERNING LAW AND DISPUTE RESOLUTION. This Contract shall be governed by and interpreted in accordance with the laws of the State of  , and any disputes arising out of or in connection with this Contract shall be exclusively resolved by the courts of the State of  .

CONFIDENTIALITY. The Parties acknowledge that the existence and the terms of this Contract and any oral or written information disclosed by the Parties in connection with the preparation and execution of this Contract are considered confidential information. Each Party shall maintain the confidentiality of such information and shall not disclose it without the prior written consent of the other Party, except for the information that is in the public domain other than through the Party's unauthorized disclosure or shall be disclosed pursuant to the applicable laws and regulations or orders of the court or other governmental authorities.

This clause shall survive the termination or expiration of this Contract for any reason.

ADDITIONAL TERMS.  .

SEVERABILITY. The invalidity or unenforceability of any provision of this Contract shall not affect the validity or enforceability of any other provision of this Contract.

ENTIRE CONTRACT. This Contract represents the entire agreement between the Parties and supersedes any prior oral or written agreements.

WAIVER. The failure of any Party to enforce a particular provision of this Contract shall not constitute a waiver of their right to enforce that provision in the future.

 

AMENDMENTS. This Contract may be amended or modified only by a written Contract signed by both Parties.

 

BINDING EFFECT. This Contract shall be binding upon the Parties and their respective successors and assigns according to the federal, state, and local law requirements.

 

ASSIGNMENT. Neither Party may assign this Contract or any of its rights or obligations hereunder without the prior written consent of the other Party, which consent shall not be unreasonably withheld.

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date.

THE BUYER

 ,

 , USA

____________________________
(Place for signature)

 

THE SELLER

 , 

 , USA

____________________________
(Place for signature)

 

Written by Karyna Pukaniuk - Reviewed by Jonathan McGill

Template Description

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Paper titled "Business Contract", woman and man shaking hands near the desk

A business contract template is a legally enforceable agreement between two or more parties engaged in a commercial transaction. It can be written or verbal, though a written business contract template is always recommended for clarity and legal protection.

When Is a Business Contract Used?

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Business contracts are used in nearly every industry. Anytime goods, services, or financial transactions are exchanged, a contract can help define expectations and safeguard interests. Here are common scenarios where business contract agreements are necessary:

  • Partnership agreements — A business agreement contract defines ownership, profit-sharing, and decision-making authority if you're forming a business with a co-founder or investor.
  • Service agreements — Freelancers, consultants, and contractors rely on business agreement contracts to ensure they get paid for their services and their clients receive expected deliverables.
  • Employment contracts — Companies use business contracts templates to define employer-employee expectations, including job responsibilities, salary, benefits, and termination conditions.
  • Sales agreements — When selling products or property, a business contract outlines the terms of the sale, payment methods, and delivery conditions.

In these situations, well-structured contracts for business ensure that all parties understand their obligations and liabilities. A business contract template can streamline the process, saving time and reducing legal risks.

How To Fill Out a Business Contract?

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Step 1: Enter the contract date and party information

Simple business contracts identify when the agreement is made and who the parties involved are.

Part of the business contract sample PDF
  • Write the "Effective Date" of the business agreement.
  • Include the full name and address of the Seller.
  • Include the full name and address of the Buyer.
Example:

This Business Contract for the sale of products/goods (the "Contract") is entered into on April 10, 2024 (the "Effective Date") by and between:

William Carter, an individual residing at 500 Oak Street, San Diego, CA, 92101 (the "Seller"), and
Emily Parker, an individual residing at 745 Maple Avenue, Austin, TX, 78701 (the "Buyer").

Step 2: Define the subject of the contract & payment terms

A printable business contract template specifies the agreement and how payments should be handled.

Part of the business agreement template
  • Clearly describe the goods or services being sold (the "Object(s)").
  • Indicate the total purchase price and payment terms.
Example:

Product: 50 units of high-speed office printers
Model: Canon X500 Series
The total purchase price for the listed Object(s) is $25,000 (the "Purchase Price"). Payment shall be made as follows:

50% upfront payment upon contract signing
Remaining 50% upon delivery of the goods

Step 3: Set delivery details

A business agreement template specifies when and how the goods or services will be delivered.

Part of the printable business contract template
  • Define the deadline for delivery.
  • List the delivery address where goods should be sent.
  • Indicate the delivery method (e.g., shipping, local pickup).
Example:

The Seller shall deliver the goods to the Buyer on or before May 1, 2024.
The goods shall be delivered to the Buyer's address at 745 Maple Avenue, Austin, TX, 78701.

The Seller shall deliver the goods using the following method: UPS Freight Shipping. Both Parties must agree upon any changes to the delivery method in writing.

Step 4: Outline inspection & return policy

To avoid disputes, include in the business contract sample PDF terms regarding product inspection and defect handling.

Part of the printable business contract template
  • Specify how long the Buyer has to inspect the goods after receiving them.
  • Detail what happens if defects or damages are found.
  • Indicate whether the Seller is responsible for return costs.
Example:

The Buyer is entitled to inspect the delivered goods within 5 days of receipt.
If any discrepancies, defects, or damages are found, the Buyer must notify the Seller in writing.

If the goods are found to be defective or damaged, the Seller shall be responsible for the cost of return shipping and shall replace the defective goods within 10 days of receipt of the returned product.

Step 5: Sign the contract

For the business contract example to be legally binding, both parties must sign it.

Part of the business agreement
  • Have the Buyer and Seller print and sign their names.
  • Include their addresses for confirmation.
  • Each party should keep a signed copy for their records.
Example:

THE BUYER
Emily Parker
745 Maple Avenue
Austin, TX, 78701
USA

THE SELLER
William Carter
500 Oak Street
San Diego, CA, 92101
USA

!
  • Double-check for accuracy before signing.
  • Ensure both parties receive a signed copy.
  • Store contracts for business in a safe place for future reference.

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