Glossary and Definitions
Sales Agreement (Nigeria)
A Sales Agreement (or Sales Contract) is similar to a Bill of Sale and is used to document the sale of an item (usually over $500) and transfer its title from the seller to the buyer. A Sales Agreement may be used for a variety of items such as cars, watercraft, services, assets, etc. A Sales Agreement CANNOT be used to sell real estate, shares, or stocks. As compared to a Bill of Sale, a Sales Agreement is more appropriate for ongoing transactions or for transactions involving services as well as physical items. A Bill of Sale is more commonly used for a single transaction of a physical piece of property.
A Sales Agreement normally contains several pieces of information:
- The full name and contact information of the buyer and seller (either the individual or company)
- A statement to the effect that the seller is transferring the property or service to the buyer
- A detailed description of what is being sold, including any makes, models, serial numbers, registration numbers, or other descriptors. If a service is being exchanged, it is important to outline exactly what services are included and excluded
- Quantity of payment being exchanged, type of currency, and how payment will occur
- Time and location at which payment will occur
- Which party will deliver the goods, and the date, place, and time of delivery
- Which party shall bear responsibility should the product become damaged during transport
- Any warranty or guarantee about the condition of the item; also, warranties that the item is legally owned and free from liens/encumbrances
- A statement about whether the buyer has had the opportunity to inspect the goods prior to taking possession
- Additional clauses outlining the governing jurisdiction, specifying how to make changes to the document, etc.
For more information about Sales Agreements, what they should contain, and to access a customizable Sales Agreement form, see below.