The agreement should follow the relevant legislation as found in the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
Statutory requirements when selling and supplying goods
The Sale of Goods Act assumes that the seller owns outright the goods which are being sold and that they have the right to sell them.
The description of the goods should be accurate and where a sample has been provided, the goods supplied must be the same as that sample.
They must be of a satisfactory quality, to include in the areas of durability, appearance and finish and they should be fit for purpose.
Other details to be included in an agreement for the sale and supply of goods
As well as including clauses ensuring compliance with the statutory requirements, an agreement for the sale and supply of goods will also need to address the following issues:
- Quantity. This can include leeway to provide over or under the specified amount by a small number, to allow for difficulties in accurately assessing some goods. Failure to include this proviso could mean the seller is in breach of contract if the amount provided is even slightly under the agreed quantity.
- Price. This will also include any extra costs such as delivery and packaging, insurance and VAT that the buyer is required to pay for.
- Details of delivery, to include timeframes and where the goods will be delivered to.
- What will happen in the event of any damage to the goods.
- Details of payment, to include a timeframe and any security in the event that payment is not made. This could be retention of title until payment is received or the ability to cancel a contract.
- Details of when the insurance risk passes to the buyer.
To ensure that your rights as either buyer or seller are protected, it is advisable to have a contract for the sale or supply of goods drawn up by an expert commercial lawyer. They will be able to draft a bespoke agreement that will deal specifically with your business and its requirements.
Dealing with a dispute over the sale and supply of goods
In the event of a disagreement arising over the sale and supply of goods, you should try and deal with it as soon as possible to prevent the situation escalating.
We can advise you of your legal position in relation to any contract that you have entered into and work on your behalf to enforce your rights and obtain compensation if applicable.
Our commercial team have a strong track record of negotiating satisfactory outcomes to disputes and we can put your argument strongly to other parties. Where possible, we recommend settling disagreements without recourse to the court and where necessary we can advise and represent you through an alternative dispute resolution process.
Hutchinson Thomas is the first law firm in Wales to be awarded the Law Society Mark of Excellence. The firm and many of our lawyers are recognised year on year in the Legal 500 publication as leading individuals in their field.
If you would like an agreement for the sale and supply of goods drawn up or you are involved in a dispute regarding this, please feel free to call us on the following numbers or fill in our contact form.