Sales Contracts (Alberta Council)

From SJA

This is a draft document.

Contents 1 The Need 2 Policy 2.1 Purpose 2.2 Scope 2.3 Responsibility 2.4 Definitions 2.5 References and Related Statements of Policy and Procedure 3 Procedures 3.1 Single Sales Contract 3.2 Standing Supply Contracts 4 Attachments

The Need

Written sales contracts clearly document the agreement between the customer and the company. Standard contracts are generally used to cover potential issues in a systematic and coordinated manner. In particular, for sales that are complex or that will take a considerable amount of time to fulfill, a written sales contract is important to identify the terms and conditions of the sale. Examples include customized services, ongoing services, and standing order supply arrangements.

Policy

Standard form contracts shall be used unless expressly authorized by the Regional Director.

Changes to sales contracts must be authorized and attached as an addendum to the original contract.

Purpose

This Statement of Policy and Procedure outlines basic contract content and authorization requirements for sales contracts.

Scope

This policy applies to all sales personnel involved in the negotiation or development of customer contracts, individuals responsible for fulfillment of the contract, and the Finance Department.

Responsibility

The Sales Department is responsible for ensuring that:

• Contracts and subsequent additions to those contracts are appropriately authorized
• Correct prices are quoted
• Payment terms are clearly stated
• Terms and conditions of standing supply contracts are checked and incorporated on any orders related to them

The Finance Department is responsible for ensuring that:

• The customer is invoiced according to the terms of the contract
• All new credit accounts undergo the credit reference check process.

Definitions

• "Fulfillment" means the actual delivery of goods from inventory to the customer.
• "Standing Supply Contract" means a contract for a larger amount of goods or services where the price and volumes have been determined in advance, but which will be delivered to the customer in lesser amounts upon request.

References and Related Statements of Policy and Procedure

• Extending Credit (Alberta Council)
• Unity: Creating an Order (Alberta Council)

Procedures

Single Sales Contract

1. All sales contracts shall follow the standard form unless expressly authorized by the Regional Manager.
2. Changes to normal and customary payments terms and conditions must be authorized by both the Finance Manager and the Regional Director. Those changes must be attached as an addendum to the original contract document and copies distributed as per point number four below.
3. Changes to normal terms and conditions other than payment terms must be authorized by the Vice President of Corporate Services and the Regional Director. Those changes must be attached as an addendum to the original contract document and copies distributed as per point number four below.
4. A full copy of the signed contract (including detailed payment and delivery terms) must be sent to:
   1. Customer
   2. Shipping (if necessary)
   3. Finance Department

Standing Supply Contracts

1. Where a customer has a standing contract for supply of goods or services on demand, a customer order must be created.
2. Finance will verify that the quantities and prices of the goods or services against the original standing contract are correct.

Attachments

None.