The Scrap Vehicle Sale Agreement is essential for transactions involving vehicles sold specifically for scrapping or dismantling in South Africa. This document becomes necessary when a vehicle owner wishes to dispose of a vehicle that is no longer roadworthy, severely damaged, or economically unrepairable. The agreement ensures compliance with South African regulations, including the Second-Hand Goods Act 6 of 2009, environmental legislation, and vehicle deregistration requirements. It protects both sellers and buyers by clearly defining the vehicle's condition, intended use, and transfer of responsibilities. The document is particularly important given South Africa's strict regulations on second-hand goods trading and environmental protection in the automotive recycling sector.

1. Parties: Identification and details of the Seller and Buyer, including full legal names, identification numbers, and contact details

2. Background: Context of the agreement, explaining that the vehicle is being sold specifically for scrap purposes

3. Definitions: Key terms used in the agreement, including 'Scrap Vehicle', 'Purchase Price', 'Completion Date', etc.

4. Sale of Vehicle: Details of the transaction, confirming the sale of the vehicle for scrap purposes

5. Purchase Price and Payment: Agreed purchase price, payment terms, and method of payment

6. Vehicle Description and Condition: Detailed description of the vehicle, explicitly stating its scrap condition and that it's sold 'as is'

7. Seller's Warranties: Limited warranties regarding ownership, right to sell, and absence of encumbrances

8. Buyer's Acknowledgments: Buyer's confirmation of understanding the vehicle's scrap status and acceptance of its condition

9. Transfer of Ownership: Process and timing of ownership transfer, including documentation requirements

10. Deregistration: Responsibilities regarding vehicle deregistration and notification to authorities

11. Environmental Compliance: Buyer's obligations regarding environmental regulations in handling the scrap vehicle

12. Risk and Insurance: Transfer of risk and responsibility for the vehicle

13. General Terms: Standard legal provisions including notices, entire agreement, and governing law