Start Up Comopany Question on Wholesale Contract

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Hello,

We are a start-up LLC company registered in the state of New Jersey, wholesaling and distributing our brand of widgets in NY, NJ, and MA. We are launching in less than 2 weeks where we will begin selling our product to retailers and individuals.

Since we have little capital and we base our inventory strictly on customer demand, our main concern is if our customers order a bulk order of units to pay for at the date of delivery, and failing/refusing/backing out to pay after we actually pay for and get the inventory.

Are there any legal documents that will establish and confirm a sale between two business entities (when dealing with retailers)? Something like a contract that is signed at the time and date of when the sale occurred which states how much volume, how much money will be transacted, and a guarantee of this transaction occurring seems plausible to me (someone with no legal background).

Same question for individual sales rather than with retailers?

I hope to hear back from you.

Thanks,
Sunny Kwak
(845) 323-0783

Hi there and congratulations on your business venture! I have been in similar circumstances of starting a new business endeavor with little to no capitol. However, I would be doing you a serious disservice not to strongly urge you to confer with legal counsel prior to engaging in any transactions. I just can't tell you the horror stories I've seen over the years. So many of them could have been prevented by spending a very modest sum to secure legal advice upfront. Please, think about going to the WLD main page and contacting them for a referral to an attorney in your area. You absolutely need properly worded contracts before accepting any new orders. I know many people skip this step...but most end up sorely regretting it in the end. Hope all goes well for you. AJJ