Sale of Goods Agreement (Business to Business)

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What is it?

A Sale of Goods Agreement (Business to Business) is a legal contract for the sale and purchase of goods (that’s to say physical items as opposed to services you might provide).

You can ensure that your relationship with a purchaser or seller is formalised in a legally binding contract by using a Sale of Goods Agreement (Business to Business). This means you can set out the exact nature of the goods as well as price and payment terms and what will happen at the end of the contract.

This agreement is designed for the sale of goods between businesses, not the sale of goods from a business to a consumer. The rules relating to sale to consumers are different, and you may need to seek legal advice. Please contact us for more information!


Why do you need it?

Before a product reaches its final destination, it may pass through the hands of local or international manufacturers and distributors. It is therefore very important to make sure the buyer's and seller's responsibilities are established at the beginning of the business relationship.

A Sale of Goods Agreement (Business to Business) establishes the terms on which a seller will sell and transfer goods to a buyer. The agreement must be clearly written to ensure careful consideration of the sale and delivery risks. Indeed, a well-drafted Sale of Goods Agreement (Business to Business) can lay the foundation for a cost-effective relationship between seller and buyer.

Key clauses to watch for:

When drafting a Sale of Goods Agreement (Business to Business), it is important to focus on a number of key clauses, in particular:

  • Details of the buyer and seller;
  • Description of the goods and relevant taxes and duties;
  • Deadline for payments;
  • Notification of defective goods; 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).

Sale of Goods Agreement (Business to Business) Document

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