Include These In Your Customer Contracts And Price Quotations

Last updated: December 12, 2022 3 min read

In a previous article, we explored the components of a contract between an independent contractor and an employer from the employer's perspective.

Or, in other words, a contract for hiring purposes. But what about drafting contracts for services and quotations for clients/customers?

Whether from businesses or freelancers, clients (individuals or companies) receive quotations and even sometimes contracts when purchasing a service/product.

Customer contracts or contracts for services are legally binding agreements between a 'seller' and a customer.

They include components like the terms and conditions for pricing and shipping details, details about the warranty, and return policies, just to name a few.

Quotations or invoices, on the other hand, detail the products/services rendered or to be rendered at a price along with additional info such as taxes, discounts, etc...

Let us dive a bit deeper into the details of both and what you should include in them.

What to include in Customer Contracts

This type of contract is important for exchanging goods and services for money with customers to prevent fraud by outlining clear language that both parties can agree on before making a transaction. But what are the components to consider when drafting such a contract?

This type of agreement has similar features to the one needed when hiring independent contractors, as discussed earlier. However, there are also some differences. They are as follows:

1. Information of both parties: This includes the legal names of the customer and the seller, contact numbers, email, and mailing addresses.

2. Terms and scope of the project: This clause should entail detailed descriptions of the purpose and scope of the work so all parties involved agree on what the customer will pay and what is being provided.

3. Description of goods or services: Detailed descriptions of the goods and or services to be exchanged for money.

4. Payment terms: This explains how the customer will purchase your goods/services. It should include the type of payment method, the timeline for that payment, and the type of currency thereof.

5. Schedule and deadlines for work: Having a schedule and deadline for the transaction ensures that the business/company/person guarantees a date for the service to be done or goods delivered, so the customer does not hold back payments.

6. Expiration clause: This clause describes what will cause the agreement to expire, which in this case will be when the customer receives their goods or services.

7. Termination clause: This clause states that the business/company/freelancer or customer is allowed to terminate the contract at any time. It also includes penalties for any cancellations or breaches.

8. Dispute resolution: This outlines the process for resolving disputes should they arise.

9. Signature of both parties: As needed in any form of contract, the signatures of you and the customer are what make the contract legally binding. It is visual evidence that both parties agreed on all the aspects of the contract.

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See an example of a customer agreement below:




This free example was downloaded from SignWell.

What to Include in Your Quotations/Invoices

1. Header and contact information: These features make it easier for your customers to identify the invoice's origin. Include a business logo in the header's top left or top right corner if you have a business logo.

Contact information should include the legal name of your business/company, a physical address if you have one, an email address, and a contact number.

2. Invoice number: This is needed especially for taxes purposes so the authorities can know which payment belongs to which invoice and to help you keep track of sales made.

Be consistent with the sequence you use and use a running number to discourage the authorities from thinking there are gaps in your numbering because of leaving an invoice. You do not need that trouble. You may use a numbering system of 4 or 5 digits or more, especially when you have countless clients.

3. Invoice date and billing period: Every invoice needs to be dated as it also helps with keeping track of things. In some cases, even adding the billing period may be mandatory. In other cases, you may outline the date the invoice was created and sent to the customer and the date the payment is due.

4. Services/products rendered: A list of services/products rendered helps customers see clearly what they purchased, and the cost accrued. To be very detailed you can describe the type of goods or services, the quantity, the date (in the event of services; when the service was carried out), and other aspects such as the total amount due and the conversion rate you wish to use.

5. Calculation of subtotals, taxes, and totals: This gives the customer a visual breakdown of the total amount due.

6. Other additional information: You may opt to add other details such as ‘thank you’ notes and legal statements.

7. Keep copies: Always keep copies either physically or in soft copies. If you decide to do both or only the latter, make multiple copies and store them in multiple locations for safekeeping.


See an example of a quotation template below:

 Quotation template

This template was retrieved from Jotform.


Having accurate and professionally drawn customer contracts and quotations goes a long way to attracting and keeping your clients/customers and ensuring you are in good standing legally. For that reason, carefully consider these documents to be in tip-top shape so they can pass any scrutiny test.