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Agreement for Sale of Used Equipment

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AGREEMENT FOR SALE OF DATA PROCESSING EQUIPMENT

No.

THIS AGREEMENT is made by and between ( ) and the Purchaser identified below. Purchaser agrees to purchase from , and by its acceptance and execution of this Agreement agrees to sell to Purchaser, on the terms and conditions contained on both sides of this Agreement, the data processing machines listed below (hereinafter referred to individually as the "machine," and collectively as the "Machines")

Type and Model
Machine Description (Including Features)
Quantity
Unit Purchase Price
Item Purchase Price

Location of installation (if other than below)

INSTALLATION CHARGE

FREIGHT & INSURANCE

SALES TAX

TOTAL PURCHASE PRICE

DOWNPAYMENT (50%)

BALANCE DUE

THE ADDITIONAL TERMS AND CONDITIONS ON THE REVERSE SIDE HEREOF ARE INCORPORATED IN AND MADE PART OF THIS AGREEMENT. PURCHASER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS ALL TERMS AND CONDITIONS STATED ON BOTH SIDES OF THIS AGREEMENT, AND THAT THIS AGREEMENT, TOGETHER WITH ALL APPENDICES OR OTHER ATTACHMENTS, CONSTITUTES THE ENTIRE AGREEMENT BETWEEN AND PURCHASER AND SUPERSEDES ALL PROPOSALS, ORAL AND WRITTEN, BETWEEN THE PARTIES ON THIS SUBJECT.

Accepted:

_________________

By:

Title:

Date:

_________________

By:

Title:

Date:

1. ACCEPTANCE

This Agreement will be deemed executed only upon acceptance by at its Headquarters by a duly authorized agent, whose signature and date of signature shall be affixed on the reverse side of this Agreement in the spaces provided. The date of such signature shall be the effective date of this Agreement. Until such signing and dating, this Agreement shall only be considered an offer to purchase by Purchaser and an offer to sell by , either of which offers can be withdrawn. [Purchaser shall be sent a copy of the executed Agreement with the packing slip].

2. PURCHASE PRICE, PAYMENT; TAXES

(a) Purchaser agrees to pay the listed Total Purchase Price set forth on the reverse side of this Agreement in the following manner:

i) Upon the execution of this Agreement, the Purchaser shall pay a down payment in the amount of fifty percent (50%) of the Total Purchase Price; and

ii) the remaining balance of the Total Purchase Price is due and payable on the date of delivery of the Machine(s).

(b) If the Purchaser fails to remit payment within ten (10) days of their due date, a late charge equal to one and one half percent (1½%) per month shall accrue and be payable on the amount due.

(c) In addition to the Total Purchase Price set forth on the reverse side of this Agreement, the Purchaser agrees to pay amounts equal to any taxes resulting from this Agreement, or any activities hereunder, exclusive of taxes based on net income. Any personal property taxes assessable on the machines after delivery to the carrier shall be borne by the Purchaser.

3. TITLE

Title to each Machine passes to the Purchaser on the date of shipment from , or on the date of acceptance of this Agreement, whichever is later.

4. SECURITY INTEREST

reserves a security interest in each of the Machines listed on the reverse side of this Agreement. Theses interests will be satisfied only by payment in full. Where payment in full for the Machines has not been received by , is hereby granted the power of attorney to sign Purchaser's name to any documents necessary for the protection of such security interest.

5. RISK OF LOSS OR DAMAGE

Risk of loss and damage shall pass to the Purchaser upon delivery by of the Machine(s) to the carrier. Purchaser and its insurers, if any, relieve of the responsibility for all risks of loss or damage to the Machines.

6. SHIPMENT

All Shipments are F.O.B. from any of ' plants. The Purchaser agrees to pay for all costs of transportation and drayage to the Purchaser's location of installation. In the absence of written instructions to the contrary, will select the carrier on behalf of Purchaser but shall not be deemed thereby to assume any liability in connection with the shipment nor shall the carrier be construed to be an agent of .

7. INSTALLATION

The Purchaser agrees to pay all installation charges and to make available and assume responsibility for all costs associated with providing a suitable place of installation and the necessary electrical power, outlets and air-conditioning required for operating the Machine(s) as defined in the Machine Manufacturer's Installation Manual. Purchaser assumes full responsibility for the overall effectiveness and efficiency of the operating environment in which the Machine(s) is to function.

8. WARRANTIES

Machines purchased under this Agreement may be either newly assembled by from new and serviceable parts which are equivalent to new in performance in these Machines, or assembled by from serviceable used parts or machines, which have been previously installed. warrants that each Machine will be free from defects in material and workmanship and will conform to the Purchaser's applicable specifications for a period of six (6) months from receipt by Purchaser, unless the Machine was improperly used or installed by Purchaser.

8(a). Service and Parts Warranty

Commencing on the date of delivery of each Machine and continuing for the duration of the warranty period, agrees to provide to the Purchaser, except as set forth in the Section entitled "Exclusions," warranty service to keep the Machines in, or restore the Machines to, good working order. Such maintenance will include lubrication, adjustments, and replacement of parts deemed necessary by . Parts will be furnished on an exchange basis, and the replaced parts become the property of . Warranty service provided under this Agreement does not insure the uninterrupted operation of the Machines. may, at its option, store on the Purchaser's premises, maintenance equipment and/or parts that deems necessary to fulfill this Warranty.

All transportation and other charges for delivery and installation or replacement of parts or Machines shall be paid by Purchaser.

shall have full and free to the Machines to provide services thereon. Purchaser shall promptly inform of any change in the Machines' location during the warranty period.

8(b). Exclusions

The warranties provided by under this Agreement do not include:

i) repair of damage caused by failure to continually provide a suitable installation environment with all facilities prescribed by the applicable Machine Manufacturer's Installation Manual including, but not limited to, the failure to provide, or the failure of, adequate electrical power, air conditioning or humidity control;

ii) repair of damage caused by the use of the machines for other than the data processing purpose for which designed;

iii) repair or damage caused by: accident; disaster, which shall include, but not be limited to, fire, flood, water, wind and lightning; transportation, neglect or misuse; alterations, which shall include but not be limited to, any deviation from the Machines' physical, mechanical or electrical design; attachments, which is defined as the mechanical, electrical, or electronic interconnection to a Machine of equipment and devices not supplied by ;

iv) electrical work external to the machines or maintenance of alterations, attachments or other devices not furnished by ;

v) providing warranty service if the machine is located outside the United States or Puerto Rico.

THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

9. MAINTENANCE SERVICE AND PARTS

Following expiration of the applicable warranty period, , if requested, will provide, at 's charges and terms then generally in effect, maintenance service and maintenance parts for the Machines, as long as such services and parts are generally available.

10. ERRORS

Errors in price and delivery quotations, order acknowledgments and invoices are subject to correction by .

11. LIMITATION OF REMEDIES

's entire liability and the Purchaser's exclusive remedy shall be as follows:

In all situations involving performance or non-performance of Machines furnished under this Agreement, the Purchaser's remedy is 1) the adjustment or repair of the Machine, or replacement of its parts, or, at 's option, replacement of the Machine, or 2) If, after repeated efforts, is unable to install the Machine or a replacement Machine in good working order, or to restore it to good working order, all as warranted, the Purchaser's shall return the Machine(s) to and shall promptly refund to the Purchaser the total Purchase Price of the Machine(s). The parties agree that the remedies provided in this Section are the Purchaser's sole and exclusive remedies against under this Agreement.

IN NO EVENT WILL BE LIABLE TO PURCHASER FOR ANY DAMAGES, INCLUDING ANY LOST PROFITS, LOST SAVINGS OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE MACHINE(S) BY THE PURCHASER OR A CUSTOMER OF THE PURCHASER; EVEN IF HAS BEEN ADVISED BY THE PURCHASER OF THE POSSIBILITY OF SUCH DAMAGES, OR ANY CLAIM BY A CUSTOMER OF THE PURCHASER.

12. GENERAL

This Agreement is not assignable without the prior written consent of . Any attempt to assign any of the rights, duties or obligations of this Agreement without such consent is void.

This Agreement can only be modified by a written agreement duly authorized by persons authorized to sign agreements on behalf of the Purchaser and of .

The term "Agreement" as used herein includes any applicable installment payment arrangement, supplement, or future written amendment made in accordance herewith.

If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be impaired thereby.

is not responsible for failure to fulfill its obligations under this Agreement due to causes beyond its control. This Agreement will be governed by the laws of the State of .

THE PURCHASER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, THE PURCHASER AGREES THAT IT IS THE COMPLETE UNDERSTANDINGS AND EXCLUSIVE STATEMENT OF THE PARTIES, WHICH SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

Dated this the day of , .

Seller

Purchaser

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What the Agreement for Sale of Used Equipment Covers

An Agreement for Sale of Used Equipment is a written contract that documents the transfer of ownership of pre-owned machinery, vehicles, or equipment between a seller and a buyer. It identifies the parties, describes the equipment (make, model, serial or VIN), states the purchase price and payment schedule, and records any representations, warranties, or disclaimers (for example, 'as-is'). The agreement also addresses title transfer, liens or encumbrances, delivery terms, risk of loss, and allocation of taxes and fees so both parties understand obligations and risk.

Why a Written Sale Agreement Matters

A clear written agreement reduces disputes, documents title transfer, and specifies payment and warranty terms so both parties know their rights and obligations.

Why a Written Sale Agreement Matters

Who Commonly Uses This Agreement

The Agreement for Sale of Used Equipment is used by businesses and individuals who sell, buy, or broker pre-owned equipment in commercial or private transactions.

  • Equipment dealers and resellers who need standardized contract terms and chain-of-title documentation.
  • Independent sellers and buyers for one-off transfers where condition and payment terms must be clear.
  • Brokers, auction houses, and fleet managers arranging multiple transfers or consignments.

Use the agreement when ownership, payment timing, condition, or lien status must be recorded and relied upon by either party or third parties.

Typical Signatory Roles

Fleet Manager

Often signs on behalf of a company that disposes of used equipment. Must confirm authority to transfer title and verify lien release or payoff before execution.

Independent Seller

An individual or small business owner selling equipment. Should supply complete serial numbers, maintenance history, and any lien documentation to avoid post-sale claims.

Essential Data Elements the Agreement Should Include

Seller Name: Full legal name
Buyer Name: Full legal name
Equipment Description: Make, model, year
Identifier: VIN or serial number
Sale Price: Dollar amount
Effective Date: MM/DD/YYYY

Key Legal Risks If the Agreement Is Incomplete

Title Defect: Buyer may not receive clear title
Undisclosed Liens: Lienholder claims after sale
Tax Exposure: Unpaid sales or use taxes
Warranty Disputes: Ambiguous condition statements
Fraud Allegations: Misrepresentation of equipment
Signature Issues: Enforceability or authentication failure

Common Preparation Mistakes to Avoid

  • Omitting the serial or VIN, which prevents precise identification and complicates title transfer or registration.
  • Using vague payment terms such as 'paid later' instead of a firm payment schedule and accepted methods.
  • Failing to perform a lien search or obtain a payoff statement when finance companies previously held the asset.
  • Relying on unsigned or initialed drafts; initials alone may be insufficient if the document requires full signatures.

Step-by-Step: Completing the Agreement

Follow a consistent sequence when preparing and executing the Agreement to minimize errors and preserve legal enforceability.

  • 01
    Identify Parties: Enter full legal names and business entities
  • 02
    Describe Equipment: Include serial or VIN and condition
  • 03
    State Consideration: Specify sale price and payment terms
  • 04
    Sign and Date: All parties sign and date final copy

Where Copies Should Go After Signing

After execution, deliver copies to the parties and any third parties that have an interest, and file or record where legal requirements apply.

  • Buyer: Keeps executed original for possession and registration
  • Seller: Retains a signed copy for records and tax reporting
  • Lienholder: Send payoff or release documentation when applicable
  • DMV/County: Record transfer for vehicles or titled equipment where required

Configuring an Online Completion Workflow

When you prepare the agreement online, set required fields and signer order, and choose authentication appropriate to the transaction's risk level.

Field Configuration
Required Fields Make seller, buyer, VIN, price mandatory
Signer Order Seller signs first, buyer signs second
Authentication Email + SMS code or ID verification
Attachments Attach title, maintenance records, lien release

Digital Signing and Delivery Considerations

Choose a platform that supports standard formats, audit trails, and the authentication level your transaction requires.

  • File Formats: Support for PDF and DOCX is essential
  • Audit Trail: Record timestamps, IPs, and actions
  • Integrations: Work with CRM, cloud storage, or ERP

Typical Timeframes and Deadlines to Track

Key dates should be defined in the agreement and tracked by both parties to avoid payment, registration, or tax compliance problems.

Effective Date:

The date obligations begin (MM/DD/YYYY)

Payment Due:

Specific due date or schedule for agreed consideration

Delivery Window:

Date and location for transfer of possession

Title Transfer:

File with DMV or agency within state-required period

Record Retention:

Keep executed agreement for statutory retention period

Key Processing Milestones for a Sale

A simple milestone timeline helps parties coordinate inspections, payment, and title transfer without delay.

01

Inspection and Negotiation

Buyer inspects equipment; parties finalize terms

02

Document Preparation

Draft agreement including VIN, price, and terms

03

Execution

Parties sign; obtain notarization if required

04

Transfer and Recording

Payment, delivery, and title/registration filing

Core Clauses to Include in the Agreement

A professional agreement organizes obligations into clear clauses so parties understand condition, responsibility, and remedies if issues arise.

Equipment Details

Provide a precise description including make, model, year, and serial or VIN; attach photographs or inventory lists as exhibits to avoid identification disputes.

Purchase Price

State purchase price, deposit, financing terms (if any), accepted payment methods, and consequences for late or missed payments.

Condition & Warranties

Specify whether sale is 'as-is' or includes express warranties; describe any service history or known defects and the scope of seller obligations.

Title & Liens

Warrant that seller has authority to transfer title and disclose liens; require seller to deliver lien releases or payoff documentation when applicable.

Delivery & Risk

Define delivery terms, transfer of risk of loss, inspection rights, and who bears costs for shipping, loading, or storage.

Governing Law

Name the state whose laws will govern the agreement and any dispute-resolution process such as arbitration or venue for litigation.

Download, Save, and Supplement the Agreement

Make copies in common formats, gather supporting documents, and consider notarization where statute or risk profile suggests it.

File Formats

Save executed copies as PDF/A for long-term archival and maintain editable DOCX copies for amendments or redlines.

Supporting Documents

Attach title certificates, lien releases, maintenance logs, and receipts for repairs as exhibits to the main agreement.

Notarization

Notarize where state law or buyer preference requires it; some title transfers are easier with notarized sale documents.

Record Copies

Provide signed copies to both parties, to any finance party, and to the registration authority when needed.

eSignature Pricing Comparison for Agreement Workflows

Common vendor plans differ by starting price, trial options, bulk-send access, audit trails, and HIPAA support; signNow is listed first for comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical Examples of Agreement Use

Two typical scenarios illustrate how parties document used-equipment transfers and mitigate common risks.

Dealer Bulk Sale

A regional equipment reseller sells a lot of construction machines to a contractor

  • The contract lists serial numbers, warranties, and a staged payment schedule
  • Attaching maintenance logs and requiring lien releases prevented post-sale title claims and simplified registration.

Private Vehicle Transfer

An independent seller transfers a pickup with a clear title to a small business buyer

  • Parties record VIN, bill of sale, and payment receipt
  • Filing the sale with the DMV and retaining a notarized bill of sale ensured smooth registration.

Frequently Asked Questions About the Agreement

Answers to common questions about validity, notarization, signatures, and what to do if errors are discovered after signing.


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