Free Sales Agreement

Free Sales Agreement

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Sales Agreement

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Frequently Asked Questions
What is a Sales Agreement?A Sales Agreement is a detailed contract outlining the terms of sale of goods and services to a third party. What is the difference between a Sales Agreement and a Bill of Sale?A Sales Agreement is a detailed sales contract. It is commonly used when selling new goods and services or items that require delivery.

In contrast, a Bill of Sale is a simple contract that is used to provide evidence that goods have been sold. It is commonly used for straightforward transactions, such as when selling a used vehicle.
Why can't I use a Sales Agreement for a real estate transaction?There are a specific set of rules you must follow when selling real estate. Use our Real Estate Purchase Agreement when transferring real estate.

Your Sales Agreement

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Sales Agreement

THIS SALES AGREEMENT (the "Agreement") dated this _____ day of _____________, 20____


______________ of ________________________________________________________________________________
(the 'Seller')


- AND -

______________ of ________________________________________________________________________________
(the 'Buyer')


IN CONSIDERATION OF THE COVENANTS and agreements contained in this Sales Agreement the parties to this Agreement agree as follows:

  1. Sale of Goods
  2. The Seller will sell, transfer and deliver to the Buyer on or before the _____ day of _____________, 20____, the following goods (the 'Goods'):
  3. Purchase Price
  4. The Buyer will accept the Goods and pay for the Goods with the sum of ________________________ ($0) CAD, paid by cash as required in clause 4 of this Agreement.
  5. The Seller and the Buyer both acknowledge the sufficiency of this consideration. In addition to the purchase price specified in this Agreement, the amount of any present or future sales, use, excise or similar tax applicable to the sale of the Goods will be paid by the Buyer, or alternatively, the Buyer will provide the Seller with a tax exemption certificate acceptable to the applicable taxing authorities.
  6. The Buyer will make payment for the Goods at the time when, and at the place where, the Goods are received by the Buyer or, in the alternative, when any document of title or registrable bill of sale, bearing any necessary endorsement, is tendered to the Buyer.
  7. Delivery of Goods
  8. The Goods will be deemed received by the Buyer when delivered to the Buyer at ________________________________________________________________________________. The method of shipment will be within the discretion of the Buyer. However, the Seller will only be responsible for the lesser of truck freight or rail freight to the Buyer.
  9. Risk of Loss
  10. Risk of loss will be on the Buyer from the time of delivery to the carrier. The Buyer will provide, at its expense, insurance on the Goods insuring the Seller's and the Buyer's interest as they appear, until payment in full to the Seller.
  11. Warranties
  12. THE GOODS ARE SOLD 'AS IS' AND THE SELLER EXPRESSLY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The Seller does not assume, or authorize any other person to assume on the behalf of the Seller, any liability in connection with the sale of the Goods. The Seller's above disclaimer of warranties does not, in any way, affect the terms of any applicable warranties from the manufacturer of the Goods.
  13. The Buyer has been given the opportunity to inspect the Goods or to have it inspected and the Buyer has accepted the Goods in its existing condition. Further, the Seller disclaims any warranty as to the condition of the Goods.
  14. Title
  15. Title to the Goods will remain with the Seller until delivery and actual receipt of the Goods by the Buyer or, in the alternative, the Seller delivers a document of title or registrable Bill of Sale of the Goods, bearing any necessary endorsement, to the Buyer.
  16. Security Interest
  17. The Seller retains a security interest in the Goods until paid in full.
  18. Inspection
  19. Inspection will be made by the Buyer at the time and place of delivery.
  20. Claims
  21. The Buyer's failure to give notice of any claim within 10 days from the date of delivery will constitute an unqualified acceptance of the Goods and a waiver by the Buyer of all claims with respect to the Goods.
  22. Excuse for Delay or Failure to Perform
  23. The Seller will not be liable in any way for any delay, non-delivery or default in shipment due to labor disputes, transportation shortage, delays in receipt of material, priorities, fires, accidents and other causes beyond the control of the Seller or its suppliers. If the Seller, in its sole judgment, will be prevented directly or indirectly, on account of any cause beyond its control, from delivering the Goods at the time specified or within one month after the date of this Agreement, then the Seller will have the right to terminate this Agreement by notice in writing to the Buyer, which notice will be accompanied by full refund of all sums paid by the Buyer pursuant to this Agreement.
  24. Remedies
  25. The Buyer's exclusive remedy and the Seller's limit of liability for any and all losses or damages resulting from defective goods or from any other cause will be for the purchase price of the particular delivery with respect to which losses or damages are claimed, plus any transportation charges actually paid by the Buyer.
  26. Cancellation
  27. The Seller reserves the right to cancel this Agreement:
    1. if the Buyer fails to pay for any shipment when due;
    2. in the event of the Buyer's insolvency or bankruptcy; or
    3. if the Seller deems that its prospect of payment is impaired.
  28. Notices
  29. Any notice to be given or document to be delivered to either the Seller or Buyer pursuant to this Agreement will be sufficient if delivered personally or sent by prepaid registered mail to the address specified below. Any written notice or delivery of documents will have been given, made and received on the day of delivery if delivered personally, or on the third (3rd) consecutive business day next following the date of mailing if sent by prepaid registered mail:

    SELLER: ______________, ________________________________________________________________________________

    BUYER: ______________, ________________________________________________________________________________

  30. General Provisions
  31. Headings are inserted for the convenience only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  32. All representations and warranties of the Seller contained in this Agreement will survive the closing of this Agreement.
  33. The Buyer may not assign its right or delegate its performance under this Agreement without the prior written consent of the Seller, and any attempted assignment or delegation without such consent will be void. An assignment would change the duty imposed by this Agreement, would increase the burden or risk involved and would impair the chance of obtaining performance or payment.
  34. This Agreement cannot be modified in any way except in writing signed by all the parties to this Agreement.
  35. This Agreement will be governed by and construed in accordance with the laws of the Province of Alberta and the Seller and the Buyer hereby attorn to the jurisdiction of the Courts of the Province of Alberta
  36. If any clause of this Agreement is held unconscionable by any court of competent jurisdiction, arbitration panel or other official finder of fact, the clause will be deleted from this Agreement and the balance of this Agreement will remain in full force and effect.
  37. This Agreement will inure to the benefit of and be binding upon the Seller and the Buyer and their respective successors and assigns.
  38. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  39. Time is of the essence in this Agreement.
  40. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise. The Buyer acknowledges that it has not relied upon any representations of the Seller as to prospective performance of the Goods, but has relied upon its own inspection and investigation of the subject matter.

IN WITNESS WHEREOF the parties have executed this Sales Agreement on this _____ day of _____________, 20____.


______________ (Seller)


(the 'Seller')


______________ (Buyer)


(the 'Buyer')

Sales Agreement Information

Alternate Names:

A Sales Agreement is also known as a:

  • Purchase Agreement
  • Sales Contract

What is a Sales Agreement?

A Sales Agreement is used to document the sale and purchase of services or goods between a buyer and a seller. It includes information about both parties, payment details, and whether or not warranties will be included in relation to the goods or services.

The buyer and seller in a Sales Agreement may either be individuals or corporations.

LawDepot's Sales Agreement may be used in all provinces and territories excluding Quebec.

Who needs a Sales Agreement?

Anyone who is purchasing or selling goods or services to another party where the seller will make warranties should have a Sales Agreement in order to document the terms of the transaction.

If you wish to sell or purchase an item "as-is", with no warranties on the condition of the goods, you may wish to use a Bill of Sale.

What is the difference between goods and services?

Goods in a Sales Agreement are physical items, such as computers, vehicles, livestock, or smaller housewares.

Services are when the seller will be providing a service to the buyer, such as installing a computer or mowing a lawn.

Goods and services together are when a buyer will be purchasing both an item and a service from the seller. For example, a computer and its installation.

How does payment and liability work in a Sales Agreement?

Payment from a buyer to a seller can be made in a variety of ways. Some of your options include:

  • Cheque
  • Cash
  • Bank draft

If the seller agrees, you may also pay using a Promissory Note, and it is up to them if a deposit will be required.

The risk of loss of the item may be transferred from the seller to the buyer either when the buyer receives the good or when the seller ships the item(s) to the address provided by the buyer.

What is "assignment" in a Sales Agreement?

Assignment is when either the buyer or seller choose to have someone else, such as a friend, family member, or co-worker, sell or purchase the goods in their stead.

In your Sales Agreement, you may choose to only allow this by having written consent from the actual buyer or seller who has assigned another party to act for them.

Related Documents:

  • Bill of Sale: a document that acts as a receipt and a record of transfer of ownership of an item sold to a buyer
  • Promissory Note: an agreement that serves as an enforceable promise to pay back a loan to someone
  • Purchase of Business Agreement: an agreement made to document when an individual or coporation buys all the shares and/or assets of another business

Frequently Asked Questions:

Sales Agreement FAQ
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