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How can you explain a sales contract to customers in simple terms?

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A sales contract is a legal document that outlines the terms and conditions of a transaction between a seller and a buyer. It can include details such as the price, delivery, warranty, payment, and cancellation policies. As a direct sales professional, you need to be able to explain a sales contract to your customers in simple terms, so that they can understand what they are agreeing to and feel confident about their purchase. Here are some tips on how to do that.

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Mrigendra(Boney) Mittal

Co-founder & CRO - Zentrumhub | 25 Hot Travel Startup- 2025 | Speaker | Host
Ben Lai

I help introverted small business owners to win sales without feeling pushy ? EThical, HOlistic, Scientific sales…

1 Use plain language

Avoid using jargon, acronyms, or technical terms that your customers may not be familiar with. Instead, use plain language that is clear, concise, and easy to follow. For example, instead of saying "This contract is governed by the UCC", you can say "This contract follows the rules of the Uniform Commercial Code, which is a set of laws that apply to sales transactions in the US". If you have to use a term that is not common, explain what it means and how it affects the contract.

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Mrigendra(Boney) Mittal

Co-founder & CRO - Zentrumhub | 25 Hot Travel Startup- 2025 | Speaker | Host
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A sales contract is a piece of paper to cover both the customer and yourself in terms of mishap. Hence look at the sales contract as a win win situation for both the parties and take the same approach to explain the contract. One of the key values in doing so is you should be able to empathize with the customer on the queries they raise on the contract.

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Ben Lai

I help introverted small business owners to win sales without feeling pushy ? EThical, HOlistic, Scientific sales training and coaching ? Founder & Director of Sales Ethos
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The more complex the sales proposal, the harder it is for your buyer to make a decision. It is a core competency for sales professionals to explain complex ideas in simple terms, making it easy for them to buy.

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2 Highlight the benefits

Your customers are more likely to sign a sales contract if they see how it benefits them. Therefore, you should highlight the positive aspects of the contract, such as the value, quality, service, or guarantee that you are offering. For example, you can say "By signing this contract, you are getting a high-quality product at a fair price, with a one-year warranty and free delivery". You should also address any objections or concerns that your customers may have and show how the contract resolves them.

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Ben Lai

I help introverted small business owners to win sales without feeling pushy ? EThical, HOlistic, Scientific sales training and coaching ? Founder & Director of Sales Ethos
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In addition to highlighting benefits, translate what they mean for your client using the phrase "What this means for you is..." This helps them to understand the ultimate value they will receive from your product.

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3 Simplify the structure

A sales contract can be intimidating if it is too long, complex, or cluttered. You can simplify the structure of the contract by breaking it down into sections, using headings, subheadings, and bullet points, and using short sentences and paragraphs. You can also use visual aids, such as charts, graphs, or diagrams, to illustrate the key points of the contract. For example, you can use a chart to compare the features and prices of different products or plans, or a diagram to show how the delivery process works.

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4 Provide examples

Sometimes, the best way to explain a sales contract is to provide examples that illustrate how it works in practice. You can use scenarios, stories, or testimonials that show how the contract has benefited other customers or how it has solved their problems. For example, you can say "One of our customers, John, signed this contract last month and he was very happy with the product and the service. He said that the product met his expectations, the delivery was on time, and he had no issues with the payment or the warranty".

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5 Ask for feedback

After you have explained the sales contract to your customers, you should ask them for feedback and make sure that they have understood everything. You can ask them open-ended questions, such as "What do you think of the contract?" or "Do you have any questions or concerns about the contract?" You can also ask them to summarize the main points of the contract or to repeat the terms and conditions that they are agreeing to. This will help you to clarify any confusion, address any doubts, and confirm their interest and commitment.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Alexandra Brand?o

Executiva de Vendas Sênior | Especialista em Projetos e Inteligência de Mercado
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Um contrato de venda é um acordo entre você (o vendedor) e o cliente (o comprador) que estabelece os termos da transa??o. Nele, s?o detalhados itens como pre?o, prazo de entrega, condi??es de pagamento e responsabilidades de ambas as partes. é importante ler e compreender todos os termos antes de assinar, para garantir uma negocia??o justa e transparente.

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How can you explain a sales contract to customers in simple terms?

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3

4

5

6

1 Use plain language

2 Highlight the benefits

3 Simplify the structure

4 Provide examples

5 Ask for feedback

6 Here’s what else to consider

Direct Sales

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How can you explain a sales contract to customers in simple terms?

1

2

3

4

5

6

1 Use plain language

2 Highlight the benefits

3 Simplify the structure

4 Provide examples

5 Ask for feedback

6 Here’s what else to consider

Direct Sales

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