Social Commerce Sales Agreement

What a good one includes

• Precise identification of both parties, including legal names, contact information, and the specific social media handles used to conduct the transaction.
• A detailed description of the goods being sold, including quantity, condition, and any specific modifications or custom requests.
• Clear payment terms detailing the total cost, accepted payment platforms, handling of processing fees, and the deadline for payment completion.
• Comprehensive shipping terms that specify the delivery method, estimated timeline, tracking requirements, and the point at which ownership and risk of loss transfer to the buyer.
• A explicit refund, return, and cancellation policy outlining whether sales are final and who pays for return shipping if an exchange is permitted.
• A dispute resolution clause defining how disagreements will be handled, including the governing law and preferred method of mediation before taking legal action.

Common mistakes to avoid

• Relying entirely on informal direct messages as a binding agreement, which often lack essential legal protections and can be easily deleted or altered.
• Failing to specify who bears the risk of loss or damage during transit, leading to disputes if a package is lost or damaged by the carrier.
• Accepting payments through personal payment options without a formal contract, leaving you vulnerable to platform-driven chargebacks and dispute claims.
• Omitting a firm deadline for payment or pickup, allowing buyers to hold up inventory indefinitely without completing the transaction.

Frequently asked questions