Sales Revenue Recognition Agreement
SALES REVENUE RECOGNITION AGREEMENT
This Sales Revenue Recognition Agreement (the "Agreement") is made and entered into as of [Date], by and between [Your Company Name], a [State of Incorporation] corporation, with a principal place of business at [Your Company Address] ("Company"),
And
[Client Name], with a principal place of business at [Client Address] ("Client").
WHEREAS, the Company is engaged in the business of [Brief Description of Business], and
WHEREAS, the Client desires to engage the Company for the provision of [Detailed Description of Goods/Services] in accordance with the terms and conditions herein.
Now, Therefore, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
1. Definition of Revenue
"Revenue" shall mean all income that arises from the sale of goods, the rendering of services, or other use of capital or assets associated with the main operations of the Company before any deductions or allowances, as recognized in accordance with Generally Accepted Accounting Principles (GAAP).
2. Sales and Payment Terms
2.1The Company shall deliver the goods/render services as per the terms stated in Schedule A (attached hereto and made a part of this Agreement).
2.2 The Client shall make payment for the goods/services rendered in accordance with the payment schedule outlined in Schedule B.
3. Revenue Recognition
3.1 The Company shall recognize revenue when it is realized or realizable and earned by the Company, in accordance with GAAP.
3.2 No revenue shall be recognized until the product is shipped or the services are performed, evidence of an arrangement exists, the sales price is fixed or determinable, and collectibility is reasonably assured.
4. Returns and Allowances
Any returns of goods or allowances for services shall be documented and recognized as deductions from the total revenue in the period that the return allowance is granted.
5. Audit Rights
The Company shall maintain accurate and complete records of all sales and revenue transactions. The Client, or its authorized representative, shall have the right to audit these records upon reasonable notice, during normal business hours, to verify compliance with this Agreement.
6. Confidentiality
Both parties agree to keep the terms of this Agreement and any information acquired about each other's business confidential, and to not disclose it to any third party without prior written consent.
7. Term and Termination
This Agreement shall be effective as of [Date] and shall continue until terminated by either party upon at least [Number] days' written notice.
8. Notices
Any notice required to be given pursuant to this Agreement shall be in writing and delivered personally to the other designated party at the above-stated addresses or mailed by certified, registered, or express mail, return receipt requested or by email.
9. Entire Agreement
This Agreement contains the entire agreement of the parties concerning the subject matter hereof and supersedes all existing agreements and all other oral, written, or other communication between the parties concerning its subject matter.
10. Amendments
No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party to be charged with enforcement.
11. Governing Law
This Agreement shall be governed by the laws of the state of [State], without regard to its conflict of laws principles.
IN WITNESS WHEREOF, the parties have executed this Sales Revenue Recognition Agreement as of the date first above written.
[Your Company Name]
By: 
Name: [Your Name]
Title: [Your Title]
Email: [Your Email]
Phone: [Your Company Number]
[Your Company Website] |
[Client Name]
By: 
Name: [Client Representative Name]
Title: [Client Representative Title]
Email: [Client Representative Email]
Phone: [Client Representative Phone]
Schedules:
Schedule A - Description of Goods/Services
(Attach a detailed description of the goods/services that are subject to this agreement.)
Schedule B - Payment Schedule
(Attach the schedule of payments along with the milestones or timeframes.)
