When it comes to conducting business transactions, contracts are an essential tool in establishing clear agreements and ensuring that both parties are aware of their obligations and responsibilities. In particular, contracts of sales are crucial in outlining the terms and conditions of a sale, including the price, delivery dates, warranties, and other essential details. In this article, we will explore the different forms of contracts of sales that are commonly used in business.

1. Express Contracts

Express contracts are the most common form of contracts of sales. They are typically written or verbally agreed upon by both parties and specify the terms and conditions of a sale. Express contracts are legally binding and can be enforced by the courts if necessary.

2. Implied Contracts

Implied contracts are not explicitly stated but are inferred based on the actions of both parties. For example, if a customer orders a product from a supplier, and the supplier delivers the product and sends an invoice, an implied contract of sale has been formed. Implied contracts are not always legally binding, but they can be enforced if one party breaches the agreement.

3. Conditional Contracts

A conditional contract of sale is a contract that is dependent on certain conditions being met. For example, if a customer agrees to purchase a product, but only if it is delivered by a specific date, a conditional contract has been formed. If the condition is not met, the contract may be voided.

4. Installment Contracts

Installment contracts of sale are agreements in which the purchase price is paid in installments over time. The terms of the contract will specify when payments are due and the consequences of missed payments. Installment contracts are commonly used for high-value purchases such as houses or cars.

5. Output Contracts

Output contracts are agreements where a seller agrees to supply the buyer with all of their production output. For example, a farmer might sign an output contract with a food manufacturer to supply them with all of their wheat crop. These contracts are commonly used in industries where one party relies heavily on the other for their products or services.

In conclusion, contracts of sales are essential in establishing clear agreements between parties in a business transaction. The type of contract used will depend on the nature of the sale and the parties involved. Whether it is an express contract, implied contract, conditional contract, installment contract, or an output contract, it is crucial that all parties are aware of their obligations and responsibilities to ensure a successful transaction.