Buy or sell goods using our free Sale of Goods Contract template to ensure both parties in the agreement are protected. Ensure that your transaction is done without any hassle by using our document.
Last Update March 17th, 2023
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- Purchase Agreement Template
- Contract for Sale of Goods
- What Is a Sale of Goods Agreement
- Terms of a Sale of Goods Contract
- What Law Governs a Contract of Sale of Goods
- Contract of Sale of Goods Sample
- FAQs About Sale of Goods Contracts
What Is a Sale of Goods Agreement
A Sale of Goods Agreement is a legal document that is used when a business or individual wishes to sell goods to another individual or business.
The Sale of Goods Agreement is used to specify what is being sold and set the terms and conditions of the sale.
The contract will cover basic concepts like price, but also anything that has to do with warranties, the risk involved, and more.
This agreement may go by other titles, such as:
Sales Agreement
Sale of Goods Contract
Sales Contract
Agreement to Sell Goods
Use ourSale of Goods Agreement template to draft your legally valid contract in minutes.
Types of Goods for Sale
Typically, a Sale of Goods Agreement is used only for buying or selling a physical item.
However, a Sales Contract can be used for various products. In some cases, it can be used to create an agreement that includes a service as well.
Similar to a Service Agreement, you can pay for a service, the difference is it will be related to the product, such as installing it or delivering it.
Terms of a Sale of Goods Contract
To ensure that a Sale of Goods Contract will be enforceable, it is essential to include all the correct terms and conditions.
Leaving any important details out could mean that if the agreement is violated, you could have a difficult time defending your case in a court of law.
Go over the following terms of a Sale of Goods Agreement, below.
The transaction
After including the names of each party, the first term you must specify is the transaction of the good(s).
Mention that the selling party agrees to sell the product to the buyer.
Amount to be paid
In this section, specify how much the good(s) will be sold for.
Mention that both parties agree on the purchase price. Also, add any information regarding a deposit, and if it is refundable or not.
Payment
Choose how the good(s) will be paid for by the buyer. It could be paid by cash, a bank transfer, or by some other method.
Also, include if the payment will take place all at once or over a long period.
Delivery of Goods
Include the date that the good(s) will be received by the buyer.
Determine any consequences the seller may face if the item or items are not delivered to the buyer by that time.
Once these parts are filled in and the contract is agreed upon, you must sign and date the document with the other party.
Use our Sales of Goods Contract template to ensure that you do not commit any errors while drafting the document.
What Law Governs a Contract of Sale of Goods
In the United States, the transaction of goods is generally regulated by the sales laws of each state.
However, in the United States, every state except Louisiana has adopted Article Two of the Uniform Commercial Code (§ 2-101).
Article 2 of the UCC regulates all parts of the sale of goods.
The code provides solutions to problems that may occur during the completion of a transaction, such as:
Cancelation of a contract with unreasonable terms
Warranty of merchantability
Warranty of fitness
These solutions keep both buyers and sellers safe from fraud or unfair contracts.
Article 2 also makes it mandatory for all transactions over $500 to be made in writing.
Louisiana chose not to adopt article 2 and has its own (similar) civil code regarding the sale of goods.
Contract of Sale of Goods Sample
To have a better understanding of how your contract should be structured, you should review a sample of a Sale of Goods Contract.
That is why we have added an example for you to examine below.
FAQs About Sale of Goods Contracts
To clear up any doubts you may have regarding Sale of Goods Agreements, we have answered some of the most common questions that are asked about the contract.
Read the answers to the questions below to have a better idea of what Sale of Goods Contracts are and how to create one.
What are Examples of Sales of Goods?
Various types of goods may be sold. They are generally classified as:
Existing Goods: Items that already exist are known as existing goods, and can be either specific or ascertained, meaning that the buyer knows how much they are receiving, or it hasn't been settled yet.
Future Goods: These goods are bought yet have not been created when they were sold.
Contingent Goods: These are future goods that are dependent on a specific condition to complete the transaction.
How to Get a Contract for Sale of Goods?
It’s possible to draft your own Sale of Goods Contract
The typical way has always been to have a lawyer draft your agreement. However, this method usually comes with excessive legal fees.
Download LawDistrict’s Sale of Goods Agreement template to skip the unreasonable prices.
How to Use a Sale of Goods Contract?
To ensure that the contract rules are enforced, you must ensure that the contract is used correctly.
That means you must include all the correct terms and conditions, and abide by the Uniform Commercial Code or Louisiana’s civil code if you are a resident of that state.
Finally, ensure that both you and the other party sign and date the contract, making it legally binding.