Overview of a Sale of Goods Contract

What is a Sale of Goods Contract?

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

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.

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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