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Commercial Sales Contract for the United Kingdom

Commercial Sales Contract Template for England and Wales

A Commercial Sales Contract governed by English and Welsh law is a legally binding agreement that establishes the terms and conditions for the sale of goods between businesses. It covers essential elements including product specifications, pricing, delivery terms, warranties, and risk transfer. The document incorporates requirements from the Sale of Goods Act 1979 and related commercial legislation, providing a comprehensive framework for business-to-business sales transactions in England and Wales.

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What is a Commercial Sales Contract?

The Commercial Sales Contract is designed for business-to-business transactions involving the sale of goods in England and Wales. This document is essential when businesses need to establish clear, legally enforceable terms for commercial sales transactions. It incorporates key provisions required by English law, including those from the Sale of Goods Act 1979, and addresses crucial aspects such as product specifications, quality standards, delivery terms, risk transfer, and payment conditions. The contract provides protection for both parties and clarity on their respective rights and obligations in the commercial relationship.

What sections should be included in a Commercial Sales Contract?

1. Parties: Details of the contracting parties including registered addresses

2. Background: Context and purpose of the agreement

3. Definitions: Defined terms used throughout the agreement

4. Supply of Goods: Description of goods, specifications, and delivery terms

5. Price and Payment: Payment terms, method, and timing

6. Delivery: Delivery obligations, timing, and logistics

7. Title and Risk: Transfer of ownership and risk in goods

8. Warranties: Quality and performance guarantees

9. Termination: Circumstances and process for ending the agreement

10. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Commercial Sales Contract?

1. Intellectual Property: IP rights and licensing - include when goods involve IP

2. Compliance: Regulatory requirements - include for regulated industries

3. Insurance: Insurance requirements - include for high-value goods

4. Force Majeure: Events beyond reasonable control - include for long-term contracts

5. Data Protection: Data handling obligations - include if personal data involved

What schedules should be included in a Commercial Sales Contract?

1. Product Specification: Detailed technical specifications of goods

2. Pricing Schedule: Detailed pricing structure and terms

3. Service Level Agreement: Performance metrics if services included

4. Delivery Schedule: Detailed delivery requirements and timeframes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions

















Clauses






























Industries

Sale of Goods Act 1979: Primary legislation governing contracts for the sale of goods in England and Wales. Covers implied terms about quality, fitness for purpose, and description, and defines rights and remedies for both parties.

Supply of Goods and Services Act 1982: Legislation particularly relevant when the commercial contract includes both goods and services, establishing statutory terms for service provision.

Unfair Contract Terms Act 1977: Restricts how liability can be excluded or limited in contracts and applies a reasonableness test to contract terms.

Consumer Rights Act 2015: While primarily focused on consumer contracts, provides useful guidance and best practices for commercial contracts.

Contracts (Rights of Third Parties) Act 1999: Governs situations where third parties might have enforcement rights under the contract.

Late Payment of Commercial Debts (Interest) Act 1998: Legislation concerning payment terms and interest in commercial contracts, including statutory interest rates for late payments.

Misrepresentation Act 1967: Covers pre-contractual statements and representations, providing remedies for false or misleading statements made during contract negotiation.

Limitation Act 1980: Sets out the time limits within which various types of legal claims must be brought.

UN Convention on Contracts for International Sale of Goods (CISG): International treaty governing cross-border sales contracts. While the UK is not a signatory, it's relevant when dealing with international parties who are from signatory states.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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