What is a Sale of Goods Agreement?
A Sale of Goods Agreement is a contract for the sale of physical products between a seller and a buyer. It records what is being sold, the price, delivery terms, and when ownership and risk pass from seller to buyer. It is essential for any significant or recurring supply of goods.
Why put it in writing
Clear written terms prevent disputes over quantity, quality, price and delivery, and give each side a remedy if the other does not perform.
What to include
- Seller and buyer.
- Description and quantity of the goods.
- Price and payment terms.
- Delivery — time, place and who bears the cost.
- Transfer of risk and title.
- Warranties and remedies for defects.
Create your Sale of Goods Agreement
Answer a few questions and download your contract. Related: Purchase Order, Bill of Sale.
FAQ
When does ownership pass to the buyer?
Whenever the agreement says it does — commonly on delivery or on full payment. Spell it out to avoid disputes.