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A Sale of Goods Agreement, also sometimes called a Sales Agreement or Sales Contract, is a document that a buyer and seller can enter when a certain good or certain goods are being sold. Through a Sale of Goods Agreement, a seller and buyer can outline the terms and conditions of the sale of the item or items being transferred. A Sale of Goods Agreement contains provisions about the basic logistics of the sale, like price and delivery information, but also contains the information required for an equitable relationship between the parties, such as risk of loss.
Occasionally, individuals or businesses that sell products to other individuals or businesses do so without having all the details of the parties' relationship written down. A Sale of Goods Agreement can cover the sale of any type of good, whether it's a one-time sale or multiple shipments over time. Because the transference of goods is at issue and because money is changing hands, it's a best practice to have all the details of the parties' understanding contained in one written agreement.
Although a Sales Agreement can be as detailed or as general as required by the parties, it is a best practice to include pertinent information about the transfer of title, as well as broader legal clauses covering what may happen in case of a dispute. Having a well-written Sale of Goods Agreement can help protect one or both of the parties in case there is a problem with the sale.
How to use this document
This document can be used for a seller getting ready to enter into a relationship with a new buyer, or for a buyer looking to purchase some goods from a seller. In this document, the parties will be able to enter pertinent identifying details, such as whether they are each individuals or businesses, and their respective addresses and contact information. The form filler will also input the most important characteristics of the agreement between the parties, like a description of the goods, pricing, and delivery information.
The parties will also be able to specify how the risk of loss is transferred and when the buyer actually owns the goods. This Sale of Goods Agreement will help both parties cover everything that needs to be addressed before the sale of the goods goes through.
When this agreement is done being filled out, it should be printed, signed by both parties, and a copy should be kept by each.
Sale of Goods Agreements in the United States are generally subject to specific state laws, which cover general contract principles like formation and mutual understanding. State laws also cover commercial transactions and business. Individual state laws should be checked for anything relating to the sale of goods or the interpretation of the contract in case of a dispute.
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