Document background
The Agreement of Sale Without Possession serves as a crucial legal instrument in situations where parties wish to separate the transfer of ownership from the transfer of physical possession. This type of agreement is particularly valuable in commercial transactions where immediate possession transfer is impractical, such as crop sales before harvest or equipment sales pending installation. Under U.S. law, the agreement must comply with the UCC and state-specific requirements, clearly defining the rights and obligations of both parties during the interim period between ownership transfer and possession delivery. The agreement typically includes detailed provisions for risk allocation, maintenance responsibilities, and insurance requirements.
