Legal Templates
Conditional Sales Contract

Conditional Sales Contract for Australia

Conditional Sales Contract Template for Australia

A Conditional Sales Contract is a legally binding agreement under Australian law that facilitates the sale of goods where either the transfer of title is subject to specific conditions being met or the payment is made in installments. The document incorporates provisions compliant with the Australian Consumer Law, Personal Property Securities Act, and relevant state-based legislation. It includes detailed terms covering purchase price, payment schedule, title retention, security interests, delivery arrangements, warranties, and default provisions. The agreement provides protection for both seller and purchaser while ensuring clear documentation of conditions that must be satisfied for the sale to become unconditional.

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What is a Conditional Sales Contract?

The Conditional Sales Contract is a sophisticated commercial agreement designed for use in Australian jurisdictions where parties wish to enter into a sale arrangement subject to specific conditions or installment payments. This contract type is particularly useful for high-value transactions where the seller wishes to retain title until full payment is received or certain conditions are met. The document incorporates requirements under the Personal Property Securities Act 2009 (Cth), Australian Consumer Law, and state-based sale of goods legislation. It typically includes comprehensive provisions for security interests, risk allocation, warranties, and default remedies. The agreement is structured to protect both parties' interests while providing clarity on the conditions that must be satisfied for the sale to complete.

What sections should be included in a Conditional Sales Contract?

1. Parties: Identification of the seller and purchaser with full legal names and details

2. Background: Context of the transaction and purpose of the agreement

3. Definitions and Interpretation: Defined terms and rules for interpreting the agreement

4. Sale and Purchase: Core agreement to sell and purchase the goods

5. Purchase Price: Amount payable and payment structure

6. Conditions Precedent: Conditions that must be satisfied before the sale becomes unconditional

7. Title and Risk: Retention of title provisions and transfer of risk in the goods

8. Security Interest: PPSA-compliant security interest provisions and registration rights

9. Delivery: Delivery terms, timing, and obligations

10. Warranties: Seller's warranties about the goods and compliance with ACL

11. Default and Termination: Events of default and consequences of termination

12. Governing Law: Australian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, assignment, and variation

What sections are optional to include in a Conditional Sales Contract?

1. Installation: Include when the goods require professional installation services

2. Training: Include when seller must provide training on use of goods

3. Maintenance and Support: Include for goods requiring ongoing maintenance or technical support

4. Insurance: Include when specific insurance requirements apply during the conditional period

5. Trade-In: Include when the transaction involves trade-in of existing goods

6. Intellectual Property: Include when the goods involve software or other IP rights

7. Export/Import Requirements: Include for international sales requiring compliance with export/import laws

8. Commission: Include when third-party agents are involved in the sale

What schedules should be included in a Conditional Sales Contract?

1. Schedule 1 - Goods Description: Detailed specification of goods including quantity, model numbers, and technical details

2. Schedule 2 - Purchase Price and Payment Terms: Detailed breakdown of price, payment schedule, and interest calculations

3. Schedule 3 - Delivery Schedule: Specific delivery dates, locations, and requirements

4. Schedule 4 - Conditions Precedent: Detailed list of conditions and required evidence of satisfaction

5. Schedule 5 - Form of Security: PPSA registration details and security documentation requirements

6. Schedule 6 - Warranty Terms: Detailed warranty terms and claim procedures

7. Appendix A - Required Documents: List of documents required for completion of sale

8. Appendix B - Technical Specifications: Detailed technical specifications and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Jurisdiction

Australia

Publisher

Genie AI

Document Type

Agreement Contract

Sector

Commercial

Cost

Free to use
Relevant legal definitions
Acceptance Date
Agreed Value
Business Day
Commencement Date
Completion
Conditions Precedent
Confidential Information
Contract Price
Default Event
Default Interest Rate
Default Notice
Delivery Date
Delivery Location
Deposit
Encumbrance
Equipment
Force Majeure Event
Goods
GST
Guarantor
Installation
Installment Payment
Insurance Policy
Intellectual Property Rights
Interest Rate
Loss
Maintenance Services
Payment Date
Payment Schedule
PPSA
PPSR
Purchase Price
Related Entity
Relevant Documents
Representative
Security Interest
Security Period
Specifications
Supplier Warranties
Tax
Term
Test Period
Title Documents
Training Services
Transaction Documents
Verification Certificate
Warranty Period
Clauses
Sale and Purchase
Conditions Precedent
Purchase Price
Payment Terms
Title Retention
Security Interest
Risk and Insurance
Delivery
Acceptance Testing
Warranties
Installation
Training
Maintenance
Default Events
Termination
Force Majeure
Confidentiality
Intellectual Property
Liability and Indemnity
Assignment
Subcontracting
Notices
Dispute Resolution
Governing Law
GST and Taxation
Anti-Money Laundering
Privacy
Force Majeure
Entire Agreement
Severability
Waiver
Amendment
Time of Essence
Costs and Stamp Duty
Further Assurance
Counterparts
Electronic Execution
Relevant Industries

Manufacturing

Industrial Equipment

Automotive

Construction

Agricultural Equipment

Technology and Software

Medical Equipment

Heavy Machinery

Renewable Energy

Transportation

Mining Equipment

Commercial Real Estate

Relevant Teams

Legal

Sales

Procurement

Finance

Operations

Risk and Compliance

Business Development

Credit Control

Contract Administration

Relevant Roles

Commercial Lawyer

Contract Manager

Sales Director

Procurement Manager

Finance Manager

Credit Controller

Business Development Manager

Operations Manager

Risk Manager

Compliance Officer

Sales Representative

Chief Financial Officer

General Counsel

Legal Counsel

Industries
Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010): Primary federal legislation governing consumer protection, including unfair contract terms, consumer guarantees, and business practices in sales contracts
Personal Property Securities Act 2009 (Cth): Regulates security interests in personal property, crucial for conditional sales where title retention is involved
National Credit Code (Schedule 1 to the National Consumer Credit Protection Act 2009): Governs consumer credit arrangements, which may be relevant if the conditional sale involves credit terms
Sale of Goods Act (State-specific): State-based legislation governing the sale of goods, including conditions and warranties implied in sales contracts
Electronic Transactions Act 1999 (Cth): Relevant for electronic execution and formation of contracts if the agreement is to be concluded electronically
Australian Contract Law (Common Law): Common law principles governing contract formation, terms, and enforcement
Competition and Consumer Act 2010 (Cth): Overarching federal legislation containing provisions about fair trading and competition that may affect sales contracts
Goods and Services Tax Act 1999 (Cth): Relevant for tax implications and requirements in sales contracts
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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