Ever wonder why groceries or department stores are never really on a shortage of stocks? Maybe not all the time, but they always see to it that their shelves are full and available by coordinating with different partner vendors and suppliers of these products. Buying products in bulk or wholesale and storing these items makes the availability more convenient for both sellers and buyers. Plus, for companies bulk sale comes a lot cheaper than buying in smaller quantities. Looking for the right wholesaler, and likewise requires an exchange of a bulk sale agreement to further acknowledge to exchange of material or merchandise between both parties. Read more about bulk sale agreement in this article below and don’t forget to check out our free bulk sale agreement samples:
10+ Bulk Sale Agreement Samples
1. Bulk Sale Agreement Template
2. Bulk Sale Agreement
3. Bulk Water Sale Agreement
4. Timber Bulk Sale Agreement
5. Energy Bulk Sale Agreement
6. Bulk Purchase and Sale Agreement
7. Bulk Oil Purchase and Sale Agreement
8. Bulk Sale Contract Agreement
9. Bulk Sale Petroleum Product Agreement
10. Bulk Corporate Data Sale Agreement
11. Sample Bulk Sale Agreement
What Is a Bulk Sale Agreement?
Buying in bulk or wholesale has been a long time ongoing business, most especially nowadays when a lot of businesses are going online and competition is stiff. Businesses who engage in such are called wholesalers who sells products in bulk to various outlets or retailers for onward sale, either directly or through a middleman. Wholesalers are able to sell their products for a lower price as they are selling in bulk, which reduces the handling time and costs involved. They usually provide large quantities of goods, but can take on orders for smaller quantities as well. The wholesaler may also be the manufacturer or producer of the product. With a bulk sale agreement, this document would set the different terms and conditions regarding the transfer of a large segment of the wholesaler’s materials, merchandise and the like. The contract must be for the purpose of transferring business assets.
How To Create a Bulk Sale Agreement?
Since you will be dealing with large quantities of materials or merchandise, it is imperative that a bulk sale agreement must be exchanged between buyer and seller. This will formally settle what was been initially agreed upon before the creation of the agreement. Parties should meet in advance to establish their requirements, define their conditions and then come to an understanding on the goals they want to achieve through the agreement. A lot of considerations has to be establish since depending on the product or materials bought in bulk, some may come as perishable items so a concrete timeline has to be set up. After careful discussion, it is time to create your bulk sale agreement. Now, each agreement may differ in format and the such, but the general components of a bulk sale agreement are more or less the same.
I. Details of Both Parties
Like all agreements, it is imperative to include the business name of the buyer and seller in the document. Alongside with their basic details such as the address and contact details.
II. Agreement to Sell Clause
Include an agreement to sell clause in your document, whereas the seller will perform and comply in all material respects with all of its covenants and agreements set forth in the bulk sale agreement and will enforce the performance by the originators of their respective obligations under the sale agreement.
III. Sale of Goods
Describe the goods, merchandise or materials to be sold, with the quantities and price per unit.
IV. Purchase Price
The total price to be paid for the goods, including any deposits or adjustments.
V. Payment Process
Set a payment process or procedure as to when an invoice should be delivered, payment terms and deadline.
VI. Delivery Process
Define when the goods will be delivered from the seller to buyer, and where they will be delivered to.
Most bulk sale agreements include a section that represents the seller’s and buyer’s guarantees to specific facts underlying the contract. The seller guarantees that he or she has good and marketable title to the business assets. The buyer guarantees that he or she has the authority to perform the obligations under the contract and has had the opportunity to inspect the assets. The contract may include other provisions that represent any pre-negotiated agreements between the buyer and the seller.
VIII. Timeline for Inventory
Set a timeline for the completion of inventory, upon which the product or merchandise will be delivered by the seller to the buyer.
During the transfer of business assets, a bulk sale agreement usually includes a provision stating that the seller’s company will be temporarily closed for inventory during the transfer of business assets.
X. Risk of Loss
Indicate which party will be responsible for the costs if there is damage between the time the goods are shipped and the time the goods are delivered.
These additional elements can also be included such as dispute resolution, governing laws, liquidated damages or amendments. As mentioned, there may be still several other factors to considered while you draft your bulk sale agreement, which will of course depend on the complexity of the merchandise, business assets or products in question.
Why Do You Need a Sales Agreement?
You need a sales agreement if your business sells goods or services to other parties or businesses. A professional sales agreement will help keep things clear and understood by both parties by detailing the terms of the sale. This agreement can be used for from small-scale purchases to large-scale contracts.
What Are the Benefits in Bulk Selling?
You tend to get attractive deals and hugely discounted prices. Each product comes at a much lower price compared to individual selling prices.
Who Is a Wholesaler?
A wholesaler is a person or a business entity who sells large quantities of goods to retailers or other professional businesses which are not the end consumers.
A well-written bulk sale agreement can ensure both parties that all terms and conditions are set forth, in hopes that all goes well with the beginning and the end of the selling process. More importantly, this agreement would protect both parties in the event of legal action.
FREE 15+ Revenue Sharing Agreement Samples
FREE 15+ Collaboration Agreement Samples
FREE 14+ Employee Non-Compete Agreement Templates
FREE 11+ Sample Construction Management Agreement
FREE 10+ Vendor Merchandise Agreement Samples
FREE 10+ Charity Agreement Samples
FREE 10+ Workshop Services Agreement Samples
FREE 9+ Maintenance Agreement Templates
FREE 8+ Lease Agreement Samples
How to Make a Car Loan Agreement Form Samples?
FREE 16+ Deed of Assignment Samples
FREE 10+ Sample Executive Employment Agreement
FREE 10+ Sample Pledge Agreement
FREE 9+ Supply Agreement Templates
FREE 9+ Sample Medical Website Terms and Conditions