Entering into a transaction for the sale of goods? Read more to see what details belong in your sale of goods agreement.
updated November 29, 2023 · 3min read
Whether you are buying goods for your business, or you're the seller of the goods, it's always prudent to document the sales transaction with a sale of goods agreement. Such an agreement need not be overly long or complicated, yet an effective one will contain certain basic elements.
A contract for the sale of goods works for all kinds of goods. No matter what the goods are that are being bought and sold, having a sale of goods agreement in place serves to establish the obligations of both the seller of the good and the buyer of the good.
With a properly drafted sale of goods contract, both the buyer and the seller of the goods are protected. The agreement sets out in writing what each party expects from the other, and often can go a long way to reduce potential conflict in the future.
One effective method of drafting a sale of goods for a sales transaction you'll be entering into is to obtain a sale of goods agreement template and then customize it to reflect the specific details of your transaction. Once you have a draft of an agreement, you also may want to run it by a professional adviser to make sure you haven't left anything important out of the agreement.
As you work on drafting a sale of goods contract that will work for your situation, keep in mind the following elements you should consider including in your final document:
One final consideration that may apply if you're the seller of the goods is the Federal Trade Commission's cooling-off rule. In some sales situations, you may be required to include wording as to your customer's cancellation rights. The cooling-off rule doesn't apply to all sales situations, so make sure you check to see if your sale of goods is a type of sale that comes under the exceptions to the FTC's cooling-off rule.
Regardless of whether you're buying the goods for yourself or your business—or you're in the business of selling goods to others—having a properly written sale of goods agreement is an effective tool for documenting your sales transactions and protecting the expectations of both the buyer and the seller.
by Belle Wong, J.D.
Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She ...
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