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If you're selling goods to a third party, you may need to create a sale of goods agreement. This simple agreement between a seller and a buyer outlines the terms and conditions of a sale.
Keep reading to find out how a sale of goods agreement works, what information it includes and how you can create one.
What is a sale of goods agreement?
A sale of goods agreement is a basic agreement between a vendor who is selling goods (the seller) and a buyer who purchases those goods. It contains essential information about the terms of the sale, including details of the goods, the purchase price and delivery information.
A sale of goods agreement is a legally binding contract. It protects the rights of both parties and outlines the obligations of the buyer and the seller.
Download this sale of goods agreement template at Lawpath
When should I use a sale of goods agreement?
You can use a sale of goods agreement template as either a seller or a buyer. This document can be used if you're selling goods to a third party, or if you want to buy goods from a supplier.
For example, if you're selling your old computer to someone, you could draw up a sale of goods agreement to outline the terms of the sale.
Sale of goods agreement vs bill of sale
A sale of goods agreement is slightly different to a bill of sale, despite these two documents having some similarities.
While a sale of goods agreement is drawn up and signed in advance of a transaction taking place, a bill of sale is usually exchanged when the buyer takes ownership of the goods. It outlines the transfer of ownership of goods between the seller and the buyer, and can be used as proof of purchase by the buyer.
What does a sale of goods agreement include?
A sale of goods agreement details all the essential terms and conditions of the sale. The exact information contained in the document will vary depending on the goods being purchased and the nature of the transaction, but will often include the following:
- Details of the buyer and the seller
- A description of the goods being sold
- The date of the sale and when the goods will be delivered to the buyer
- The purchase price, including any taxes and duties that apply
- Payment details
- How the goods will be delivered
- Any warranties given by the seller
- Passing of risk from the seller to the buyer
- The term of the agreement
- When the title to the goods will pass from the seller to the buyer
- What happens if any delays occur
- Notification of defective goods
- What happens if there is a dispute about the purchase
- The circumstances in which either party can terminate the agreement
Once the sale of goods agreement has been drawn up, it can then be reviewed and signed by both parties. The buyer and seller can then retain a copy of the agreement for their records.
How effective is this type of agreement?
A sale of goods agreement is a simple way to get the terms and conditions of a sale in writing. Regardless of which side of the transaction you're on, it helps ensure that your interests and rights are protected. A well-prepared agreement can prevent any misunderstandings between the buyer and seller and protect both parties if there are any problems or disputes relating to the sale.
Do I need to use a lawyer?
It's entirely up to you whether you choose to seek legal advice when creating a sale of goods agreement. If the sale is a simple and straightforward transaction, you may decide that you can create the document yourself using an online template.
However, you may wish to seek legal advice in the case of complicated transactions. You may also want to consult a lawyer to make sure your agreement is acceptable under the Sale of Goods Act in your state or territory, or whether it is affected by the Australian Consumer Law.
Get access to customisable sale of goods agreement templates online
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How do I write a sale of goods agreement?
There are a couple of options when writing a sale of goods agreement.
The first is to use a free template available online. These documents are readily available and easy to create — all you need to do is fill out a form with the details and terms of the sale. However, you will need to make sure that the document is suitable for the type of goods being sold, and that it complies with the Sale of Goods Act in your state or territory.
The second option is to hire a lawyer to draw up the agreement for you. This will obviously come at a cost, but it will ensure that the agreement satisfies all legal requirements and provides proper protection for your rights as a seller or buyer.
Where to get free legal documents and templates like a sale of goods agreement
There are several websites that offer access to customisable legal document templates, sometimes for no cost and sometimes for a fee. If you're searching for a free sale of goods agreement template, some of your options include:
- Lawpath. Lawpath offers a goods of sale agreement that you can customise to suit your needs in under 10 minutes. However, you'll need to sign up for a free account first.
- Wonder.Legal. You can create an agreement with Wonder.Legal by answering questions about the sale. The document is then sent to you in Word and PDF formats.
- LawDepot. LawDepot also offers a sale of goods agreement template that you can fill out by completing a questionnaire.
Make sure any template you choose is suitable for your sale/purchase and satisfies the legal requirements in your state or territory.
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