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Sale of Goods Agreement

Last revision Last revision Yesterday
Formats FormatsWord and PDF
Size Size6 to 8 pages
Fill out the template

Last revisionLast revision: Yesterday

FormatsAvailable formats: Word and PDF

SizeSize: 6 to 8 pages

Fill out the template

A Sale of Goods Agreement is a contract in which the Seller transfers property to the Buyer in exchange for money. The property must be personal property, such as movable items including vehicles, clothing, food, furniture, etc. and not:

  • Real estate (house, commercial building, etc.);
  • Money;
  • Securities (stocks, bonds, shares, etc.);
  • Intellectual property (copyrights, trademarks, etc.); or
  • Other intangible goods (logo, brand, etc.).

Sale of Goods Agreements can be used by commercial parties or by consumers. They are most frequently used between commercial parties (businesses). For example, one business can purchase manufacturing parts from another business. However, the agreement can be used for consumer purposes where the Seller supplies goods to a consumer (someone buying in a personal capacity). For example, a consumer may purchase horse grain mix from a Seller to feed their horses.

The agreement is a written document covering the Buyer and Seller's intentions. The parties can be individuals or businesses, and the agreement can be for one or multiple goods, which means the Seller and Buyer can agree to the purchase of a single good or multiple goods that can be delivered on different dates.

The contract can be for either:

  • Existing goods (goods that exist and are ready for immediate delivery); or
  • Future goods (goods that must be acquired or manufactured first).

The document will primarily cover the goods being sold, the purchase price, when ownership will transfer, and how delivery will take place.


HOW TO USE THIS DOCUMENT

This document should be filled out once the Seller and the Buyer have agreed to a sale of goods.

Important details will need to be filled out in this document, including information on the goods themselves, the purchase price for the goods, the responsibility for loss or damage (the party liable), how delivery of the goods will be made and when, and more. Also, the parties will identify themselves either as a business or an individual.

After the document is complete, the Seller and the Buyer must sign and date the agreement. Each party needs to keep a signed copy for their records.


APPLICABLE LAW

Each Province and Territory will have their legislation on the sale of goods. For example, in Ontario, the Sale of Goods Act applies. If the commercial parties are dealing with each other on an international level and are part of a treaty country under the United Nations Convention on Contracts for the International Sale of Goods, each Province and Territory will have an international sale of goods law. For example, in Ontario, the International Sales Conventions Act may apply. A typical example of two treaty countries dealing with each other includes the United States and Canada. The international sale of goods law can be excluded by contract.

The Provincial and Territorial consumer protection law also applies when the transaction involves a consumer (someone buying goods personally).


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