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The UCC does not require a formal sales contract.

You may use a collection of papers or a memo to


satisfy the requirements of a sale. The UCC will allow the enforcement of a written contract even if some
of the material terms are not included or if it is not signed by all parties involved. One party cannot,
however, declare a sales contract on its own that will bind someone else. Enforceable contracts have to
be signed by a defendant, or the person to which the contract is expected to be enforced upon.

In some instances, an invoice, purchase order, or an order acknowledgement can be declared a formal
sales contract.

· Purchase orders are written by a buyer and sent to a seller. They will state the amount and type of
goods that are being purchased, the cost, and other information pertinent to the sale.

· An invoice is written by the seller and sent to the buyer in response to the purchase order or other
forms of transaction.

· An order acknowledgement helps establish the position of the seller in the event of a dispute. It is
created by a seller in response to getting a purchase order. It will clarify additional details of the sale,
including scheduling the delivery if necessary. If an order acknowledgement is also signed by a buyer, it
then becomes a sales contract.

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