Sale of Goods

Buying and selling have become a regular activity in today’s world. It is highly unlikely that someone around us has never been a buyer or a seller ever. As this is an activity that involves money, the Government has placed certain rules and regulations on it. Even then, many of us are completely unaware of the rights and duties as a consumer, which is why most exploits happen during a sale. Did you know, even the bills you receive at supermarkets are sale deeds?

Sale of good deed regulates the functioning of any sale happening between two parties. It’s not compulsory for every sale that happens in the country. However, any sale that involves a bill is said to exercising a sale of goods deed.

Buyer- A person who buys or agrees to buy the goods offered up for sale.

Seller- A person who sells or agrees to sell goods in his possession for a consideration.

Delivery- Voluntary transfer of goods from one person to another.

How To Make A Sale Of Goods Deed?

An agreement of sale of goods is a contract between a seller and a buyer whereby the seller agrees to transfer to the buyer the property in goods for a consideration. Such agreements could also be made between one part-owner and another part – buyer. An agreement of sale of goods can be absolute or conditional.

A sale of goods deed is usually created by an offer to sell or buy goods of a fixed cost and the acceptance of the said offer. The deed must be drafted in accordance with the Sale of Goods Act, 1930. As per the said act, the contract has certain effects which must be observed by parties involved.

The performance of the contract dictates that it is the duty of the seller to deliver the goods and the duty of the buyer is to pay for the goods. Unless specified otherwise, delivery and payment should occur concurrently. Only after delivery and payment are carried out, can a sale be said to have been completed.

The Sale of Goods deed essentially specifies the effects and performances of a sale that is to happen between a buyer and a seller. Any breach by either party will give the other party complete right to sue the other in court.

What Is To Be Included In Sale Of Goods Deed?

A sale of goods deed can be drawn up between any two parties contemplating to participate in a sale. It could be between merchants and customers, companies and clients and even between a shop and it’s customers. If one party breaches the contract, the other party becomes eligible for compensation.

Keep in mind, sale of goods does not cover immovable property. Sale of immovable property is a different transaction altogether.

How To Make It Legally Valid?

Sale of goods deed can be printed on both non-judicial stamp paper and on plain paper. This is a deed that does not have many strict enforcement rules. In some cases, even signatures are not mandatory, e.g., the bills you get at stores do not contain the signature of the seller, but it is still a valid sale of goods deed.

If the sale is expected to happen in the future, it is then called as an Agreement for Sale and it requires the signature of both parties.

1. Create a Sale of Goods Deed by filling in details of the parties involved- buyer and seller. While you fill the details, ensure that the following clauses are involved-

• Description of goods
• Description of the consideration
• Terms and conditions of both parties
• Consequences of breach
• Time for which the deed is valid

2. Review your entries once you are done.

3. Once the payment is completed, print the document and place signatures of involved parties at the bottom. Some sale deeds do not require signatures or seals of any kind.

Frequently Asked Question

What happens if a sale of goods deed is not drawn up?

If a sale of goods deed is not drawn up between two parties involved in a sale, one party or sometimes both may be unable to claim compensation from the other, should there be a breach. Suppose a merchant agreed to deliver a certain product to a consumer a week after an advance amount was paid. If no deed was drawn up, the consumer would end up being a victim of treachery. Since he received no receipt or note saying that the goods will be delivered to him or that he has paid in advance, he cannot prevent the seller from saying that such an incident never happened. There will be no proof to produce against the seller.

Create Sale Of Goods Deed Online

If you wish to create a sale of goods deed and are looking for how to get it done, then we’ll be more than happy to help. Besides this, we also have various other online legal documents for personal and business purposes. Although you may find several templates or ready to use sale deeds online, they may not be expert verified or comprehensive enough to protect you from legal battles. Hence, we recommend that you can use our service as we provide well-drafted, lawyer-verified deeds and documents, which will save your time as well as money.