Sales And Service Agreement Template for Australia

A Sales And Service Agreement is a comprehensive contract that governs business relationships where both product sales and ongoing services are provided. In Australia, this agreement must comply with federal legislation including the Competition and Consumer Act 2010 and the Australian Consumer Law, ensuring fair trading practices and consumer protection.

When do you need this document?

You need a Sales And Service Agreement when your business model involves selling products alongside providing related services. This commonly applies to technology companies selling software with support services, equipment manufacturers offering maintenance contracts, or distributors providing installation and training services. The agreement is essential when establishing ongoing commercial relationships with customers, distributors, or resellers where both goods and services change hands. It's particularly important for businesses operating across state borders in Australia, as it ensures compliance with both federal consumer protection laws and state-specific sale of goods legislation.

Key legal considerations

Your agreement must clearly separate obligations relating to goods from those relating to services, as different legal protections apply under Australian law. Product sales are governed by consumer guarantees under the Australian Consumer Law, including guarantees of acceptable quality, fitness for purpose, and compliance with description. Service provisions must meet standards of due care and skill, and be delivered within reasonable timeframes. You must include clear warranty terms that don't attempt to exclude statutory consumer rights, as such exclusions are void under Australian law. Pricing structures, payment terms, and termination clauses require careful drafting to avoid unfair contract terms provisions that could render parts of your agreement unenforceable.

Legal requirements in Australia

Under the Competition and Consumer Act 2010, your agreement must not contain unfair contract terms when dealing with small businesses or consumers. This includes terms that create significant imbalance, are not reasonably necessary to protect legitimate interests, or would cause detriment if applied. You must comply with Australian Consumer Law guarantees that cannot be excluded, modified, or restricted, particularly for goods under $40,000 or services under $40,000. Electronic agreements must meet requirements under the Electronic Transactions Act 1999, ensuring proper formation and record-keeping. State-based Sale of Goods Acts also apply, governing aspects such as title transfer, risk allocation, and delivery obligations. Your agreement should include dispute resolution procedures and specify governing law within Australia to ensure enforceability across jurisdictions.