Movable Property Sale Agreement

Movable property sale agreement – a professional template in Word format

A movable property sale agreement is used when the item being sold is neither a vehicle nor real estate – a construction or production machine, catering and office equipment, furniture, a bicycle, an electronic device or a vessel that is not subject to registration. In sales between private individuals or tradespeople, most disputes arise over what exactly was sold and who is liable if the item breaks down, so a written contract settles that in advance.

Sale and purchase is governed by the Obligations Act (Zakon o obveznim odnosima). With movable property, ownership and the risk of accidental loss pass to the buyer on delivery of the item and not on signature alone, which is why the template has a separate article on delivery. Alongside it there are two variants of liability for defects, depending on whether a used item is being sold or a warranty of working order is being given.

Key features

• Professional template – 6 articles drawn up in line with the provisions of the Obligations Act (Zakon o obveznim odnosima) on the contract of sale.
• Practical reliability – covers the list of accessories handed over with the item, the moment the risk passes and the warranty that the item is not encumbered by third-party rights.
• Easy customisation – it is used both by natural and by legal persons, and you choose the liability for defects between the two variants offered.
• Digital delivery – the DOCX file with instructions arrives by e-mail immediately after purchase, ready for printing and signing.

What the template includes

• Details of the seller and the buyer (name or company name, OIB (personal identification number), address or registered office) for natural and legal persons
• A detailed description of the item – the kind, make, model and type, serial number, condition and a list of the equipment and accessories handed over
• The price in figures and in words and a choice of payment method – cash on delivery or a transfer to a bank account within the agreed time limit
• An option for an advance payment or a deposit (kapara) for more valuable items with deferred delivery
• An article on delivery of the item with an express provision that ownership and risk pass to the buyer on delivery
• Variant A – sold as inspected, with liability for visible defects excluded and a note on the limits of that exclusion
• Variant B – a warranty of working order for an agreed number of months, with a choice of repair, replacement or a refund of part of the price
• The seller’s warranty that he or she is the sole owner and that the item is not encumbered by a lien or a retention of title
• Instructions for completion – describing the item, the time limits for notifying defects, the obligation to issue an invoice and the rules on consumer sales

Legal framework

No special form or notarial certification is prescribed for a movable property sale agreement – the signatures of both parties are sufficient. On delivery of the item, ownership and the risk of accidental loss or damage pass to the buyer. The buyer must inspect the item and notify the seller of visible defects without delay, and of hidden defects within the prescribed time limits from discovery – a late notification means the loss of those rights. A sold-as-inspected clause excludes liability for visible defects, but it does not protect the seller for hidden defects that the seller knew about and concealed from the buyer.

Are you not selling the item but giving it over for use? If a fee is paid, the right document is the movable property rental agreement, and if the use is free of charge, use the ugovor o posudbi (loan for use agreement). For selling a car, see the car sale agreement.