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Sales Agreement
I need a sales agreement for a transaction involving the sale of office equipment, with a total value of 50,000 DKK. The agreement should include payment terms of 30 days, a warranty period of 1 year, and specify that delivery will occur within 2 weeks of signing.
What is a Sales Agreement?
A Sales Agreement puts key details of a sale in writing, protecting both buyers and sellers under Danish contract law. This legally binding document spells out what's being sold, the price, delivery terms, and when ownership transfers from seller to buyer - all essential elements under the Danish Sale of Goods Act (Købeloven).
These agreements help Danish businesses avoid disputes by clearly stating payment schedules, quality requirements, and what happens if something goes wrong. For international trade, they often include specific terms from Incoterms® rules and comply with EU consumer protection standards when selling to individuals. A well-written Sales Agreement makes sure everyone knows exactly what they're agreeing to.
When should you use a Sales Agreement?
Use a Sales Agreement anytime you're selling goods or services worth more than 10,000 DKK in Denmark, or when the transaction involves complex delivery terms or specifications. This document becomes especially important for business-to-business deals, international trade, or sales that happen in stages over time.
The Danish legal system strongly favors written contracts for commercial transactions, making Sales Agreements vital for protecting your interests. They're particularly necessary when selling custom-made products, dealing with specific quality requirements, or setting up recurring supply arrangements. Having clear terms in writing helps prevent costly disputes and ensures compliance with Danish consumer protection laws.
What are the different types of Sales Agreement?
- Used Car Sales Agreement: Tailored for private vehicle sales, includes specific clauses about car condition, mileage, and registration transfer under Danish motor vehicle laws
- Business Purchase And Sale Agreement: Comprehensive agreement for selling entire businesses, covering assets, liabilities, and employee transitions
- Contract For Buying A House From Owner: Specialized for real estate transactions between private parties, incorporating Danish property law requirements
- Sales Rep Contract: Focuses on commission structures and performance terms for sales representatives under Danish employment law
- Harmless Agreement: Supplementary document protecting sellers from future claims, often used alongside main sales contracts
Who should typically use a Sales Agreement?
- Business Owners: Draft and use Sales Agreements when selling products, services, or entire companies to protect their interests and set clear terms
- Legal Counsel: Review and customize agreements to ensure compliance with Danish contract law and EU regulations
- Sales Representatives: Execute agreements on behalf of their companies, often working within pre-approved templates
- Private Sellers: Use simplified versions for personal transactions like selling cars or property
- Corporate Buyers: Review and negotiate terms to ensure they match business requirements and risk tolerance
- Compliance Officers: Monitor agreements to ensure they meet industry regulations and internal policies
How do you write a Sales Agreement?
- Party Details: Gather complete legal names, business registration numbers (CVR), and authorized signatories for all involved parties
- Sale Specifics: Document exact product descriptions, quantities, prices, and delivery terms following Danish commercial standards
- Payment Terms: Define payment schedule, method, currency, and any installment arrangements compliant with Danish banking regulations
- Timeline: Set clear dates for contract signing, delivery, payment, and completion of the sale
- Quality Standards: List specific quality requirements, warranties, and inspection procedures
- Risk Management: Outline liability limits, dispute resolution methods, and termination conditions under Danish law
What should be included in a Sales Agreement?
- Party Identification: Full legal names, CVR numbers, and addresses of all parties involved in the sale
- Subject Matter: Detailed description of goods or services being sold, including specifications and quantity
- Price Terms: Clear statement of price, payment method, and schedule in accordance with Danish payment laws
- Delivery Terms: Specific timing, location, and conditions for transfer of goods or services
- Risk Transfer: Exact point when ownership and risk pass from seller to buyer under Købeloven
- Dispute Resolution: Choice of Danish law, jurisdiction, and method for handling disagreements
- Signatures: Space for dated signatures from authorized representatives of each party
What's the difference between a Sales Agreement and a Business Acquisition Agreement?
A Sales Agreement differs significantly from a Business Acquisition Agreement in several key ways, though both involve transferring ownership. While a Sales Agreement typically covers specific goods or services, a Business Acquisition Agreement deals with the complete transfer of a business entity, including assets, liabilities, and ongoing operations.
- Scope and Complexity: Sales Agreements focus on discrete transactions with clear deliverables, while Business Acquisition Agreements cover complex business transfers including employees, contracts, and intellectual property
- Due Diligence Requirements: Sales Agreements need basic verification of goods and payment terms, but Business Acquisition Agreements demand extensive financial and legal investigations
- Regulatory Oversight: Sales Agreements follow standard Danish contract law, while Business Acquisition Agreements must comply with additional corporate, employment, and competition regulations
- Post-Agreement Obligations: Sales Agreements typically end at delivery and payment, but Business Acquisition Agreements often include ongoing warranties, non-compete clauses, and transition periods
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