Legal Definitions - sale note

A sale note is a written document that serves as a confirmation or memorandum of the essential terms of a sale transaction. It is typically issued by one party to the other after an agreement has been reached, summarizing key details such as the goods or services sold, quantity, price, and delivery terms. It acts as a formal record of the transaction, often preceding or accompanying a more comprehensive contract.

Here are a few examples to illustrate the concept of a sale note:

• Commodities Trading: Imagine a large food processing company that needs to purchase a specific type of wheat. After a series of phone calls and negotiations, their buyer verbally agrees with a grain broker on the quantity, grade, price per bushel, and delivery schedule for a future shipment of wheat. Immediately following this verbal agreement, the grain broker sends the food processing company a sale note. This document precisely outlines the agreed-upon terms: the type and quantity of wheat, the price, the delivery port, and the payment terms. This sale note provides a clear, written record of their verbal agreement, ensuring both parties have an identical understanding of the transaction's core elements.

• Art Auction: A collector attends a prestigious art auction and successfully places the winning bid on a rare sculpture. Once the auctioneer's hammer falls, signifying the sale, the auction house promptly issues a sale note to the winning bidder. This note details the specific artwork purchased, the final hammer price, any applicable buyer's premium, sales tax, and instructions for payment and collection. The sale note serves as the official confirmation of the purchase and its financial terms, formalizing the transaction between the auction house and the collector.

• Business-to-Business Bulk Purchase: A boutique clothing manufacturer needs to order a large quantity of a specific organic cotton fabric for their upcoming collection. After discussing various options and prices with a textile supplier over the phone, they reach an agreement on the fabric type, color, total yardage, price per yard, and an estimated delivery window. Following this conversation, the textile supplier emails the manufacturer a sale note. This document itemizes the fabric specifications, the total quantity ordered, the agreed-upon unit price, the total cost, and the projected delivery date. This sale note acts as a written confirmation of their verbal agreement, providing both businesses with a clear, documented summary of the key terms of their bulk purchase.