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Sales Contracts

Sales contracts in Shaari formalize agreements between your business and your customers. They go beyond a quotation or invoice by including binding terms, conditions, and digital signatures. Contracts are useful for projects, ongoing service agreements, and any engagement where both parties want a signed document before work begins.

What Contracts Include​

A Shaari sales contract contains:

  • Customer details -- who the contract is with.
  • Line items -- the products or services covered, with quantities and pricing.
  • Terms and conditions -- the legal and commercial terms governing the agreement.
  • Start and end dates -- the period the contract covers.
  • Digital signatures -- client signature, seller signature, and company stamp.
  • Notes -- additional information or special arrangements.

Creating Contracts​

You can create a sales contract in two ways:

From a Quotation​

The most common path. After a customer confirms a quotation:

  1. Open the confirmed quotation.
  2. Click Convert to Contract.
  3. The line items, customer, and pricing carry over automatically.
  4. Add contract-specific terms and dates.
  5. Save.

See Converting to Contract for detailed steps.

Standalone Contract​

You can also create a contract from scratch without a prior quotation:

  1. Navigate to Sales > Contracts.
  2. Click Create Contract.
  3. Select the customer.
  4. Add line items manually or from the product catalog.
  5. Enter terms and conditions, dates, and notes.
  6. Save.

This is useful when the scope of work was agreed upon verbally or through channels outside Shaari.

Contract Line Items and Terms​

Line Items​

Contract line items follow the same structure as invoice and quotation line items:

  • Product (optional, from catalog), description, quantity, unit price, discount, tax rate.
  • Subtotals and totals are calculated automatically.
  • You can add as many line items as needed.

Terms and Conditions​

The terms section is a rich text field where you enter the contract's legal clauses. Common sections include:

  • Scope of work
  • Payment schedule and terms
  • Delivery milestones
  • Warranties and guarantees
  • Intellectual property rights
  • Confidentiality
  • Termination clauses
  • Dispute resolution
tip

If you use similar terms across multiple contracts, keep a template document that you can copy from. This ensures consistency and saves drafting time.

Status Workflow​

Contracts follow a four-stage workflow:

Draft​

The contract is being prepared. All fields are fully editable.

  • Add or change line items.
  • Edit terms and conditions.
  • Adjust dates and notes.
  • No signatures can be collected yet.

Pending Signature​

The contract is finalized and waiting for signatures from all parties.

  • Core content (line items, terms, amounts) is locked.
  • The contract can be sent to the client for their signature.
  • The seller can add their signature.
  • The company stamp can be applied.

Signed​

All required signatures have been collected. The contract is now binding.

  • No further edits are possible.
  • You can generate invoices from the signed contract.
  • The contract serves as the authoritative record of the agreement.

Cancelled​

The contract has been voided.

  • Contracts can be cancelled from Draft or Pending Signature status.
  • A signed contract typically cannot be cancelled through the system (handle termination through legal processes and document it separately).
  • Cancelled contracts remain in your records for audit purposes.
caution

Moving a contract to Pending Signature locks the content. Make sure all line items, pricing, and terms are finalized before advancing to this stage. If you need to make changes after reaching Pending Signature, you must cancel the contract and create a new one.

PDF Generation​

Shaari generates a professional PDF for every contract, which includes:

  • Your company logo, name, and contact information.
  • Customer details.
  • A numbered list of line items with full pricing breakdown.
  • Terms and conditions.
  • Contract dates (start, end, issue date).
  • Signature blocks for the client, seller, and company stamp.
  • Page numbers and contract reference number.

The PDF can be downloaded at any stage. Once signatures are collected, they appear in the signature blocks on the PDF.

From Contract to Invoice​

After a contract is signed, you can generate invoices from it:

  1. Open the signed contract.
  2. Click Create Invoice.
  3. A new sales invoice is created with the contract's line items and customer.
  4. Adjust the invoice date, due date, and any other invoice-specific details.
  5. Save and submit the invoice for approval.

This is particularly useful for contracts with milestone-based payments -- you can create multiple invoices over time, each covering a portion of the contract's total value.