Updated 06.06.2024

Standard sale of goods agreement 

A versatile contract for the sale of all kinds of movable property, new or used, domestic or international, between companies or individuals. 

Use this contract: 

  • To sell an item or goods of any kind, new or second-hand.
  • When the sale takes place face-to-face or remotely.
  • If the delivery is domestic or international.
  • When the price is to be paid in advance or afterwards, in a lump sum or by instalments.



This agreement is governed by laws of England and Wales and complies with commercial regulations

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Protect yourself legally as a seller with the following options: 

  • Indication of approximate deadlines, with a certain delay to be tolerated and a grace period. 
  • Specification of known and accepted defects, maximum inspection period and limitation of liability. 
  • Invoicing of additional costs, taxes and customs duties without reservation, with or without a pre-approved ceiling. 
  • Imposition of additional restrictions on the buyer’s use or resale of goods. 
  • Obligation of partial or total payment in advance, and a penalty in the event of cancellation of the order by the customer. 

Safeguard your interests as a buyer by using the following clauses:

  • Granting of a tolerated period of delay with the right to terminate. 
  • Additional warranty period and assignment of original manufacturer’s warranties. 
  • Limitation of chargeable fees and taxes to the maximum amount approved. 
  • Agreement of a staggered payment plan with monthly or quarterly instalments. 
  • Non-equivocal allocation of customs duty and VAT payment obligations.

Contract for sale of goods 

A sales contract template is the basis for drafting a legal agreement between a seller and a buyer, by which the seller transfers the ownership of goods to the buyer, in exchange for a purchase price. A robust contract for sale of goods is important to outline the principal and ancillary rights, obligations, and liabilities of the parties, to resolve any disputes. 

A business may use a sale of goods agreement sample: 

  • To conclude a sale of merchandise of any type (for example: raw materials, furniture, commodities, stock of goods or hardware). 
  • To sell on the spot or by delivery, with the price paid upfront, after the sale, or in instalments.  
  • To carry out sales within the UK, or abroad, subject to the jurisdiction and law of the United Kingdom. 

Key aspects of a contract for the sale of goods 

  • A sale of goods contract template is suitable for any company, registered business, or even individuals. 
  • The document should clearly outline the terms of the transaction, such as the description of goods, deadline, delivery terms, and sale price. 
  • The seller is by default liable for the quality of goods up to their effective transfer (transfer of risks), and this is within the deadline. 
  • The buyer’s main duty is to pay the price within the deadline, but our sales agreement template allows you to choose additional restrictions and warranties. 

Eight tips on a contract for the sale of goods 

Protect your interests as a seller by opting for the following options in our sales agreement contract template: 

  • Clearly define the moment of transfer of risks and reduce the period of inspection for defects to the minimum. 
  • Include ancillary costs and taxes to be billed on top of the price and define the amount to be accepted by the buyer upfront. 
  • Require advance payment as a guarantee, set reminder fees, and late payment penalties. 
  • Obligate the buyer to pay a cancellation fee or disallow cancellation altogether. 

Our sales contract template also offers legal security to the buyer with the following options: 

  • Define strict deadlines where delay is not tolerated or stipulate a late delivery penalty as a coercive measure. 
  • Extend defects inspection period, additional repair warranty, or even manufacturer’s warranties, if applicable. 
  • Agree on an instalment plan for monthly or quarterly payments. 
  • Reserve the right to cancel for defects or a preliminary cancellation until a certain date, without cause. 

Create a contract for the sale of goods with AdminTech 

With the AdminTech online document builder and a sales contract template UK businesses can quickly and easily draft a professional contract for sale of goods, by simply filling in the required information and choosing from legally correct options. 

In addition to multiple choices, a professional sales contract is ready once the minimum required information is filled in: 

  • Parties’ identification and contact details 
  • Description of merchandise 
  • Deadline and terms of delivery 
  • Sale price and terms of payment. 

FAQ on a contract for the sale of goods 

When to use a sales agreement?  

A sale of goods contract template should be used every time you conclude a sale or purchase of movable property of any kind if: 

  • The parties conclude a sale at a distance 
  • The merchandise should be transported and delivered 
  • The price is not paid immediately on the spot. 

Is a sales contract legally compliant?  

All AdminTech contract examples are prepared and meticulously reviewed by skilled lawyers. This sales agreement template is governed by the laws of England and Wales and complies with international trading principles. 

What can buyers do in case of faulty goods?  

If sold goods show defects at the moment of sale, buyers are entitled to certain remedies. These include: 

  • proportional price reduction 
  • repair at the seller’s expense 
  • replacement with similar articles 
  • or cancellation of the sale. 

With our sales agreement form, parties can prioritise which measure to take before rescinding the agreement. 

Is the seller responsible for transportation?  

Depending on the options you select in our sales agreement contract example, the seller’s liability may be limited to: 

  • handing over the goods 
  • expediting the merchandise with a third-party transporter 
  • delivering the goods to the designated address. 

Only in the latter case does the seller assume liability for transportation. 

Is the seller responsible for export or import?  

Respective countries’ laws define who assumes the role of the exporter or importer, who can be the seller, the buyer, the transporter, or a third-party agent. In the sales agreement template you can select the following options: 

  • no export or import obligations 
  • the seller is liable for export only – import is up to the buyer 
  • the seller is liable for export and import. 

What damages can the buyer claim for faulty goods?  

Besides the reduction or reimbursement of the purchase price, the buyer may be entitled to additional damages, such as: 

  • faulty goods damage other property of the buyer 
  • faulty goods cause additional liability of the buyer to his clients 
  • faulty goods cause a loss of profit opportunities for the buyer. 

In these cases, it is essential to limit the liability of the seller to a maximum amount, which you can do in our sales agreement contract template. 

Can you recollect goods for default of payment?  

The ownership of goods passes when the parties intend to. In principle, the ownership is transferred once the sales act is made, even if the payment or delivery is postponed. 

By selecting an upfront prepayment option in our agreement sample, you can condition the sale on an initial payment of the price and thereby avoid situations where payment defaults occur. 

How can sellers ensure a successful sales experience? 

When it comes to successful selling, transparency is key. To ensure a smooth experience for both parties, make sure to: 

  • Clearly describe the goods and any defects upfront. 
  • Determine the handover process and who is responsible for transportation, unloading, and assembly. 
  • Set clear deadlines and specify if they are strict or approximate. 
  • Draft and sign a detailed sales agreement using our sales contract template. 
  • Keep detailed records of all transactions, complaints, and notifications. 

Create your legally binding sale of goods agreement with the AdminTech document builder. 

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Prepare your legally binding sales agreement with the AdminTech document generator in just a few clicks and in 5 to 10 minutes