In some industries, for example, the commodities industry, it is common to conduct purchases and sales orally through telephone orders and acceptances.

However, it is highly advisable for company to formalize the purchase and sale agreement in a written document, even for domestic sales.

The written agreement could be by email or facsimile to protect sellers in case of problems in trading transactions.

In general, a written agreement is formed by agreement between the seller and the buyer and is the passing of title to and ownership of goods for a price.

It is also to reduce the risk and as basic agreement for other documents needed in trading transactions.

Sch 2019