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What is a Sale of Goods Agreement?

A Sale of Goods Agreement is a contract between two parties governing the terms for the sale and purchase of goods.

A Sale of Goods Agreement defines the responsibilities of the buyer and the seller and establishes the terms on which a seller sells and transfers goods to a buyer.

A Sale of Goods Agreement also sets out the exact nature of the goods, as well as price and payment terms and what happens at the end of the contract.

Key points included

  • Description of the goods and relevant taxes/duties;
  • Shipping or collection details;
  • Delivery time;
  • Price of goods, including taxes and duties;
  • Deadline for payments and interest on outstanding or late payments;
  • Deposit details;
  • Payment method;
  • Notification of defective goods;
  • Arrangements for unexpected delays; and
  • Situations in which either party may wish to terminate the arrangement early (with consideration given for what may constitute minor and major breaches of contract).

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