A Bulk Sale Agreement records the sale of goods by a business of its inventory. In
order to protect the purchaser from claims made by creditors of the seller, the seller
must usually complete an affidavit outlining its secured and unsecured creditors. This
form contains both standard clauses as well as opportunities for customization to ensure
that the understandings of the parties are properly set forth. This agreement is useful to
a business that wishes to sell a product in bulk or if the business is selling a large
portion of its inventory, or by a person or entity who is purchasing goods from a seller in
bulk.
BULK SALES AGREEMENT
THIS BULK SALES AGREEMENT (the “Agreement”), made this ____ day of
______________, 2_____, (the “Effective Date”), by and between ________________, with its
principal place of business at ______________ (“Seller”) and ________________, with its
principal place of business at _________________ (“Buyer”), collectively referred to herein as
the “Parties.”
WHEREAS Buyer agrees to purchase from Seller and Seller agrees to sell to Buyer
certain bulk assets of Seller as detailed on Schedule A attached herein and referred to herein as
the “Goods.”
1. Term. This Contract shall begin on the Effective Date and end upon the date of last delivery,
which shall be shipped, with or without requisition for the balance of Goods then unshipped,
by___________, 20__, unless the Parties agree otherwise. In the event that as of such date,
Buyer is in arrears on the account, Seller may then cancel this Contract and sue for its damages,
including lost profits, offsetting the deposit there against, and further recover its cost of suit
including attorney fees.
2. Request for Delivery. Buyer will give Seller _____ ( ) days advance notice regarding the
nature and quantity of the Goods requested for delivery (“Request for Delivery”). Upon receipt
of the Request for Delivery, Seller will arrange for delivery through a carrier chosen by Seller,
the costs of which shall be F.O.B.___________.
3. Risk of Loss. The risk of loss from any casualty to the Goods, regardless of the cause, will
be the responsibility of Seller until the Goods have been received by Buyer.
4. Acceptance. Buyer will have the right to inspect the Goods upon receipt, and within __
business days after delivery, Buyer must give notice to Seller of any claim for damages on
account of condition, quality, or grade of the Goods, and Buyer must specify the basis of the
claim in detail. Failure of Buyer to comply with these conditions will constitute irrevocable
acceptance of the Goods by Buyer. All notices between the Parties must be in writing and
delivered by courier or by certified mail, return receipt requested.
5. Charges. Seller shall invoice Buyer upon and for each shipment. Buyer shall pay all charges
on terms of ___________________. Any late payment shall bear a late charge of ___________
(___%) percent. Overdue invoices shall also bear interest at the rate of ___% per ______. If
Seller undertakes collection or enforcement efforts, Buyer shall be liable for all costs thereof,
including attorney fees. If Buyer is in arrears on any invoice, Seller may, on notice to Buyer,
apply the deposit thereto and withhold further delivery until the deposit and all arrearages are
brought current.
6. Deposit. Upon signing this Contract, Buyer shall pay Seller a deposit of _________ ($____)
dollars toward the total price as a precondition for Seller's performance, which deposit is to be
credited to the last shipment.
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7. Warranty. Seller warrants that the Goods sold hereunder are new and free from substantive
defects in workmanship and materials. Seller warrants that the Goods are now free from any
security interest or other lien or encumbrance, that they shall be free from same at the time of
delivery, and that it neither knows nor has reason to know of any outstanding title or claim of
title hostile to its rights in the Goods. Seller's liability under the foregoing warranty is limited to
replacement of Goods or repair of defects or refund of the purchase price at Seller's sole option.
No other warranty, express or implied, is made by Seller, and none shall be imputed or
presumed.
8. Taxes. All sales taxes, tariffs, and other governmental charges shall be paid by Buyer and are
Buyer's responsibility except as limited by law.
9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of ___________________. Each of the Parties in any suit, action or proceeding
arising out of or relating to this Agreement, irrevocably (i) submits to the jurisdiction of the State
Courts of the State of _______ over any suit, action or proceeding arising out of or relating to
this Agreement, (ii) waives to the fullest extent enforceable under applicable law any objection
which it may now or hereafter have to the above venue of any such suit, action or proceeding and
any claim that any such suit, action or proceeding brought in such Court has been brought in an
inconvenient forum, (iii) waives to the fullest extent enforceable under applicable law any
objection which it may now or hereafter have to the above mentioned Court having jurisdiction
of the Parties hereto and to the subject matter of this Agreement, and (iv) acknowledges that a
final judgment in any such suit, action or proceeding brought in such Court, after all appro