Documenting the sale of goods between private people

In this day and age, an omnichannel marketing process and an integrated selling process focused on user experience can often obscure the most basic truth: the sale of goods and services between a buyer and a seller means that the two parties are, essentially, entering into an agreement – an agreement that needs to be documented.

The process of documenting the sale of products

When consumers are unhappy with a purchased product and want to return it to the seller (whether retail in-store or online), they must bring along their receipt. Why? 1) It substantiates that the sale did occur and 2) this “receipt” usually has on it specific clauses that regard the “conditions” of the sale. This means the item and transaction may be “final sale” or subject to in-store credit only or else, eligible for refund only if returned within a certain amount of time. The bottom line: this piece of paper is essentially documenting the sale between buyer and seller. A sale of goods agreement is a contract of conditions under which the seller agrees to transfer ownership of the property – usually, the goods – to the buyer, for a monetary sum. When documenting the sale, the most standard clauses apply: how the goods will be delivered, warranties and return policies. But, especially if the buyer is company or a wholesale purchaser, there may be other clauses regarding minimum order requirements and customs considerations for international purchases.

Obligations of both parties

A contract that is responsible for documenting the sale has to also clearly outline what the obligations of both parties are for the sale to be considered “successful” or viable. On part of the seller, it is that they must deliver goods according to the quality and quantity previously agreed on, ordered, and accepted. If there is a chance that the final product might not match specification, a disclaimer or note that states this, clearly visible, and made [i]before[/i] purchase is imperative in order for the seller to be legally protected from damages. There can also be no document that keeps ownership in the seller’s name. By documenting the sale, they are essentially transferring ownership rights to the buyer. For the buyer, the obligations include punctual payment and accepting the delivery of the goods. This might mean that, if there are costs associated with shipping or customs, above and beyond the sale, the contract [i]must[/i] clearly state this that the buyer must cover this cost.

A thorough sale of goods contract will take it one step further than simply obligations. It will also address “who gets what” if there is a breach of contract. An agreement of this kind doesn’t only exist to inform individuals of their rights in an exchange. A sale of goods agreement takes the time to outline the contingencies of what might happen should either party breach the contract, who is responsible, and under what conditions are they responsible? Having these kinds of legalities tied into a sale of goods contract can help mitigate any future conflict.