Overview of a Sale of Goods Contract

What is a Sale of Goods Contract?

A Sale of Goods Contract is a short-form contract between a buyer and a seller for the sale and purchase of goods.

A Sale of Goods Contract sets out simple terms governing the subject matter of the sale, the contract period, the delivery details, the purchase price and the payment terms.

A Sale of Goods Contract is meant for simple, straightforward transactions. For more detailed and elaborate terms, use a Sale of Goods Agreement.

Key points included

  • Type of the goods;
  • Length of contract period;
  • Details of delivery;
  • Purchase price and payment terms;
  • Method of payment;
  • Basic warranties;
  • Limitations on the seller’s liabilities;
  • When will title and risk pass; and
  • Notice period required to terminate this contract.

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