Purchase agreement between private individuals – what should the contract include?

Short answer: In purchases between private individuals, the Sale of Goods Act generally applies. Since the Act is dispositive, the agreement between the parties holds significant weight. A written purchase agreement should therefore clearly describe the item, price, condition, known defects, payment, and when the property is to be handed over.

When does the Sale of Goods Act apply?

The Sale of Goods Act applies to, among other things, the purchase of personal property between private individuals. If the seller is a business and the buyer is a consumer, the Consumer Sales Act generally applies instead, which provides the consumer with mandatory rights.

What should the purchase agreement contain?

• details of the buyer and seller
• a precise description of the property
• serial number, registration number, or other identification where applicable
• purchase price and payment method
• down payment if one is used
• date and place of handover
• condition and known defects
• included accessories
• any specific warranties or conditions

"As is" does not remove all liability

Even if an item is sold "as is," it may be considered defective under the Sale of Goods Act in certain situations, for example, if it does not match information provided by the seller or is in significantly worse condition than the buyer could reasonably have expected.

The buyer's investigation

The buyer may lose the opportunity to claim defects that they were aware of or should have noticed upon inspection. For more expensive property, it is therefore wise to document both the inspection and the seller's disclosures.

Delivery and risk

Determine when the property is to be handed over and when payment is to be made. If the transaction is completed at a later date, the agreement should also state who bears the risk if the property is damaged before the handover.

Common mistakes

• writing only a receipt without terms and conditions
• identifying the object too poorly
• not including verbal promises in writing
• not documenting known defects
• unclear terms for the down payment

See the Mallbutiken general purchase agreement.

For car purchases, there is a more detailed guide on purchase agreements, "as is" condition, and vehicle-related debts.

FAQ

Is there a 14-day right of withdrawal between private individuals?

No, not as a general rule of law. However, a specific right of withdrawal can be agreed upon.

Is a verbal purchase valid?

Many purchases can be valid verbally, but a written contract reduces evidentiary problems.

Can the seller write "no returns"?

Parties have great freedom of contract, but such a condition does not automatically resolve all questions regarding defects under the Sale of Goods Act.

This article provides general information and does not replace legal advice.