Free Sales Agreement Template

Thinking of selling goods and seeking a hassle-free process? Take advantage of our Sale Agreement template to easily draft your document to set clear terms and formalize a valid transaction.

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Last Update March 25th, 2024


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What Is a Sales Agreement

For any transaction, clarity is critical, and a Sales Agreement form is a legal contract that lays out clear terms and conditions of your purchase or sale, ensuring there is no miscommunication.

This agreement may go by other titles, such as: 

  • Sale of Goods Contract
  • Sales Contract
  • Agreement to Sell Goods
  • Contract for Sale of Goods

Both buyers and sellers can create a Sales Agreement to agree on terms with both individuals or businesses

It provides written proof that you agreed to the sale or purchase of goods and/or services with another party. This can help you ensure that the transaction is carried out as it is considered a legally binding contract

Ensure your contract not only defines your terms but also protects your interests with our Sales Agreement template. 

Types of Goods for Sale

There are several goods or services that you can buy or sell with a Sales Agreement.

These include:

  • Services: Tasks completed by one party for another in return for payment. Unlike physical items, services are experienced and not owned. Examples include carrying out repairs or cleaning.
  • Goods: Tangible items that can be bought or sold. Unlike services, they are physical objects you can touch, such as clothes, electronics, or food.
  • Goods and services: Items that you purchase and any accompanying service. For example, purchasing a hot tub and having it set up in your backyard.

Your Purchase and Sales Agreement can be used to specify exactly what is being purchased and if there needs to be any accompanying service to install or prepare it. 

When to Use a Sales Agreement

Sales Agreements should be used when making a transaction of goods or services with another party, whether it is an individual or business. 

Specifically, they should be used when carrying out either of the following:

  • Minor transactions
  • Major contracts

By using this form you can ensure that the following information is clear:

  • Each party’s information
  • Price and payment method
  • Sale and purchase details

It should also include warranty information, ensuring that whenever you decide to make your transaction it will be done securely, and avoid misunderstandings. 

How to Write a Sales Agreement

Just like drafting any other legal document, it’s essential to correctly lay out all the necessary information, or it may not be considered to be valid.

Follow the steps below to draft your agreement:

  1. Add party information: Include your name and address along with the name and address of the other party.
  2. Describe the good and/or service: Specify what is being purchased by the buyer, how much of it is being purchased, and if there is a service involved, explain exactly what the service is and how it will be done.
  3. State the price: List how much the goods and/or services will cost with sales tax included.
  4. Mention the payment and delivery method: Describe how the goods and/or services will be paid for and how they will be delivered.
  5. Include warranties: Add warranty information that mentions the seller does not claim any responsibility for what is done with the goods after they are sold, and that the buyer has been allowed to inspect the goods.
  6. Add cancellation terms: List the terms for canceling the contract if certain conditions are met.
  7. Include the general provisions: Clarify how the contract is structured, the responsibilities of each party, and how the agreement will be enforced.
  8. Leave space for signatures: Provide a space for both parties and any witnesses to sign and date the contract.

To avoid any mistakes when drafting your document, use our Sales Agreement contract template to quickly create an error-free document.

What Law Governs a Sale Agreement of Goods

In the U.S., each state's sales laws typically govern the trade of goods. All states, except for Louisiana, have embraced the Uniform Commercial Code's Article Two (§ 2-101), which oversees every aspect of goods sales. 

This code offers remedies for potential transaction issues, including contract cancellations due to unreasonable terms, warranties of merchantability, and fitness. 

Such provisions protect both sellers and buyers from deceptive practices and unjust agreements. 

Notably, transactions exceeding $500 must be documented in writing under Article 2. 

Louisiana, however, follows its distinct civil code for goods sales, diverging from the UCC's Article 2.

Sample Sales Agreement

Crafting a Sales Agreement isn’t always straightforward. That’s why you should look at a Sales Agreement sample doc before writing your own. 

Check out the example below to fully understand how to draft your document

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Sales Agreement Template Sample

Other Financial Documents

There are similar documents that you can use to make a hassle-free transaction as well as protect your financial interests

Take a look at the following documents which can help you when making a purchase or sale. 

LawDistrict has many financial templates available that can be used for various situations as well.

FAQs About Sales Contracts

It’s essential to gather all the important information possible before writing the terms and conditions of your Sales Agreement. 

To better understand what you need to do and look out for, we have responded to some of the most common questions below. 

What Are Examples of Specific Goods?

Different forms of products can be bought and sold. Various categories of goods can be listed on the contract, such as:

  • Unascertained goods: Products that are named but don’t provide specific details, such as their model.
  • Specific goods: Products mentioned in the agreement when the transaction has been completed.

Goods that have not yet been constructed or manufactured at the time of the transaction may also be purchased.

How Do I Get a Sales Agreement?

Most people who want to use a Sales Agreement go to a lawyer. They can draft the legal document on your behalf. However, this option can lead to a lengthy and possibly extremely expensive process. 

Instead, you can easily create your own Sales Agreement document by using our template which allows you to fill in all the necessary information in minutes. 

What Makes a Sales Agreement Valid?

For a Sales Agreement to be considered valid, it must meet a few different criteria

It requires an offer and acceptance, establishing mutual intent to form a contract. Both parties must exchange something of value, and you and the other party must be of legal age and sound mind

Both parties should enter without undue influence or misrepresentation. Then the document must be signed by both parties and witnesses if required by your state’s law.

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Sales Agreement Template Sample

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Preview of your Sales Agreement Template

THIS SALES AGREEMENT (the "Agreement") dated this ________ day of
________________, ________ by and between

_________ of _________

(the "Buyer")

_________ of _________

(the "Seller")
By entering into this Sales Agreement, the parties hereby agree to the covenants and agreements contained herein in the manner that follows:
Sale of Goods
1. The Seller hereby agrees to sell, transfer, and deliver the specified goods to the Buyer on or before the date of _____________, 20____ (the "Goods" or the "Vehicle"):
Details of the vehicle:

• Make: _________
• Model: _________
• Year: _________
• Color: _________
• VIN or HIN: _________
Sale Price
2. The Buyer shall accept the Goods from the Seller and pay the amount of $_________ (USD) (the "Sale Price"). The aforementioned amount shall be paid by cash in accordance with this Agreement.
3. The Buyer and the Seller acknowledge and agree that the consideration stated in this Agreement is sufficient. In addition to the Sale Price specified herein, the Buyer shall be responsible for any and all present or future use, excise, or similar taxes associated with the sale of the Goods. The Buyer may alternatively provide the Seller with a valid tax exemption certificate acceptable to the relevant taxing authorities in lieu of paying such taxes.
4. The Sale Price specified in this Agreement is inclusive of any applicable sales tax. The Buyer is responsible for paying the sales tax of the Sale Price unless the Buyer provides the Seller with a valid tax exemption certificate that is acceptable to the relevant taxing authorities. In such case, the amount of sales tax shall be deducted from the Sale Price payable by the Buyer.

5. The Buyer shall pay for the Goods either at the time and place of delivery or upon receipt of any document of title or registrable bill of sale with the necessary endorsement.
Delivery of Goods
6. The Goods will be deemed received by the Buyer when delivered to the Buyer at _________. The method of shipment will be at the discretion of the Buyer. However, the Seller will only be responsible for the lesser of truck freight or rail freight to the Buyer.
Risk of Loss
7. The risk of loss from any casualty to the Goods, regardless of the cause, will be on the Seller until the Goods have been received by the Buyer. The Buyer shall procure, at its own expense, insurance on the Goods insuring the Seller's and the Buyer's interest as they appear until payment in full is received by the Seller.
8. THE GOODS ARE SOLD "AS IS" AND THE SELLER EXPRESSLY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The Seller does not assume, or authorize any other person to assume on behalf of the Seller, any liability in connection with the sale of the Goods. The above disclaimer of warranties by the Seller shall not affect any applicable warranties from the manufacturer of the Goods.
9. The Buyer has been allowed to inspect the Goods or to have them inspected, and the Buyer accepts the Goods in their existing condition. Furthermore, the Seller disclaims any warranty as to the condition of the Goods.
10. The Seller will retain title to the Goods until the Buyer receives actual delivery of the Goods or until the Seller delivers a document of title or registrable bill of sale of the Goods, bearing any necessary endorsement, to the Buyer.
Security Interest
11. The Seller retains a security interest in the Goods until the Buyer has paid the full sale price.
12. The Buyer shall inspect the Goods at the time and place of delivery.
13. Any refund shall not include the costs of delivery or installation/de-installation, which shall be borne by the Buyer.
14. The Buyer must notify the Seller of any claim within 10 days from the date of delivery. Failure to do so will constitute an unqualified acceptance of the Goods and a waiver by the Buyer of all claims concerning the Goods.
Excuse for Delay or Failure to Perform
15. The Seller shall not be liable for any delay, non-delivery, or default in shipment due to labor disputes, transportation shortages, delays in receipt of material, priorities, fires, accidents, or other causes beyond the control of the Seller or its suppliers. If the Seller, in its sole judgment, is prevented directly or indirectly, on account of any cause beyond its control, from delivering the Goods at the time specified or within one month after the date of this Agreement, then the Seller shall have the right to terminate this Agreement by notice in writing to the Buyer, which notice shall be accompanied by a full refund of all sums paid by the Buyer under this Agreement. In all other cases, if the Seller fails to deliver the Goods to the Buyer within the time and manner specified in this Agreement, the Buyer may provide written notice of the default to the Seller. If within seven (7) days of the notice being received, or within such other period as agreed to by the parties, the default is not corrected, the Buyer may immediately terminate this Agreement.
16. The Buyer's exclusive remedy and the Seller's limit of liability for any losses or damages resulting from defective goods or any other cause shall be for the Sale Price of the particular delivery concerning which losses or damages are claimed, plus any transportation charges paid by the Buyer.
17. The Seller reserves the right to cancel this Agreement:

(a) if the Buyer fails to pay for any shipment when due;
(b) in the event of the Buyer's insolvency or bankruptcy; or
(c) if the Seller deems that its prospect of payment is impaired.
18. Any notice or document to be given or delivered to either the Seller or Buyer under this Agreement shall be sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or delivery of documents shall be deemed given, made, and received on the day of delivery if delivered personally, or on the third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:

• _________ of _________

• _________ of _________
General Provisions
19. Headings are provided for convenience only and do not affect the interpretation of this Agreement. Words in the singular include the plural and vice versa. Words referring to a particular gender include all genders.
20. All representations and warranties made by the Seller in this Agreement shall survive the closing of this Agreement.
21. Either party to this Agreement may assign its rights under this Agreement, but such assignment shall not alter the obligation of either party, increase the burden or risk involved, or impair the likelihood of obtaining performance under this Agreement. However, no obligation for performance imposed on either party by this Agreement may be delegated to any other person without the prior written consent of the other party. Each party has a substantial interest in having the other party perform or control the acts required by this Agreement.
22. This Agreement may not be modified except in writing signed by all parties to this Agreement.
23. This Agreement shall be governed by and construed under the laws of the , including the Uniform Commercial Code of _________. The Seller and the Buyer hereby submit to the jurisdiction of the courts of the .
24. Unless otherwise defined in this Agreement, all terms used in this Agreement shall have the same meaning as set forth in the Uniform Commercial Code in effect in the on the date of execution of this Agreement.
25. If any clause of this Agreement is held to be unconscionable by any court of competent jurisdiction, arbitration panel, or any other official finder of fact, such clause shall be deleted from this Agreement and the remainder of this Agreement shall remain in full force and effect.
26. This Agreement shall be binding upon and inure to the benefit of the Seller and the Buyer and their respective successors and assigns.
27. This Agreement may be executed in counterparts, and facsimile signatures shall be binding and considered to be original signatures.
28. Time is of the essence in this Agreement.
29. This Agreement constitutes the entire agreement between the parties, and there are no further items or provisions, either oral or otherwise. The Buyer acknowledges that it has not relied upon any representations of the Seller as to the prospective performance of the Goods, but has relied upon its inspection and investigation of the subject matter.
IN WITNESS WHEREOF the parties have executed this Sales Agreement on this ________ day of ________________, ________.

_________ (Seller)


_________ (Buyer)


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