What is a terms of sale?
A terms of sale is an agreement between the seller and the customer that governs the purchase of the product on the website. In the case of a dispute, the terms of sales will have information on the obligations of both parties.
Is it necessary?
A terms of sale is not necessary on every website. However, if you want to sell products on your website, the terms of sale is an agreement that is worth having. Since the terms of sale sets out information of the purchase, the seller will know what to expect in certain cases, including if there is a defect in the product, the return policy, etc.
Components in a terms of sale
Introduction: Like most agreements, the terms of use should have an introduction of what the agreement is about.
Offer and Acceptance: This section includes how the offer and acceptance are structured for the purchase. There must be an offer and acceptance in every contract.
Price: This section provides information on the price and the terms of payment. The section will also include that the prices are subject to change.
Shipments and returns/refunds: This section includes information on how the product will be shipped and whether a return or refund can be made.
Warranty: This section states the warranty in the product or includes a link to where they can find the warranty. The warranty may include a full or limited warranty.
Limitation of Liability: This section is a typical contract clause relating to the limitations the seller puts on potential liability arising out of certain events.
Not for resale: This section states the purchaser is agreeing they will not resell the product.
Intellectual property: This section includes the rights to the intellectual property. The section may include a license to use the website or online service. In addition, the section includes the seller remains the sole owner of any intellectual property to the product.
Related agreements: This section should include other related website agreements and a link to the agreement. The statement explains when the user is agreeing with the terms of sale, the purchaser is also agreeing to the privacy policies and/or terms of use when it is applicable.
Boilerplate: Most agreements have boilerplate clauses including governing law, arbitration, waiver and severability and entire agreement clauses.
Contact us: This section provides the contact information for questions related to the agreement.