Equipment sale agreement, lathe and press

Equipment sale agreement with serial numbers and an inspection window

Used machinery changes hands on a workshop floor, and the argument afterwards is always about condition or about who damaged the door frame on the way out. This agreement records the serial numbers and the known faults, gives the buyer two days to power the machines up, and puts the rigging, the making good and the storage charge in writing.

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Equipment sale agreement · Redgate Engineering to Holloway Fabrication · ES-2027-09Page 1 of 4
Equipment sale agreement · Redgate Engineering to Holloway Fabrication · ES-2027-09Page 2 of 4
Equipment sale agreement · Redgate Engineering to Holloway Fabrication · ES-2027-09Page 3 of 4
Equipment sale agreement · Redgate Engineering to Holloway Fabrication · ES-2027-09Page 4 of 4
Equipment sale agreement

This agreement is made on 9 September 2027 between Redgate Engineering Ltd of Unit 6, 40 Foundry Road, called the seller, and Holloway Fabrication Ltd of 18 Kiln Street, called the buyer, for the sale of two pieces of used workshop equipment. The seller is closing its machining bay and is selling the equipment second hand, as it stands on the workshop floor.

$26,000
Price
$5,000
Deposit
3 days
Inspection
2 Oct 2027
Removal by
1. The equipment
Item
Detail
Serial
Price
Centre lathe
Ashcroft 1440 gap bed, 1,000 mm between centres, three phase, 2016, with three jaw and four jaw chucks, steady rest and quick change tool post
AC14-0091472
$17,500.00
Hydraulic press
Vantage 50 tonne H frame, foot pedal, pressure gauge replaced 2025, with a set of press pins
VP50-220814
$7,200.00
Tooling lot
Two boxes of indexable tooling, a set of collets and a box of dead centres, sold as a lot and not itemised
None
$1,300.00
Total price, exclusive of tax
$26,000.00
1.1
Sold as it stands
The equipment is used, is sold in the condition it is in, and is not being sold as new or reconditioned. The seller has told the buyer, and repeats here, that the lathe tailstock quill has about 0.05 millimetres of runout, that the press ram seals were replaced in 2025, and that neither machine has a current test or service certificate.
2. Price, payment and title
2.1
Deposit, balance and when ownership moves
The price is $26,000 plus any tax properly payable. A deposit of $5,000 is paid on signing and the balance of $21,000 in cleared funds before the equipment is moved. Ownership passes when the balance is received, not when the equipment is delivered, so until then it stays the property of the seller even though part of the price is paid.
2.2
Risk moves when the equipment does
Risk passes to the buyer when the equipment is lifted from the floor by the rigger. The seller keeps the equipment insured to that point and the buyer has cover in place for the lift and the transport. Where the sale does not proceed under clause 3.2, the deposit is refunded in full within three business days.
3. Inspection and acceptance
3.1
Power on and run before acceptance
The seller keeps the equipment connected and gives the buyer access on two agreed days before 26 September 2027 to inspect it, power it up and run it under no load, with its own fitter and test bar. The seller does not dismantle the machines and does not guarantee accuracy to any published tolerance.
3.2
Three days to accept or reject
The buyer has three business days after the inspection to accept the equipment in writing or to reject it. A rejection has to name the machine and the defect. Where the defect is one the seller disclosed in clause 1.1, the rejection is not valid. Where no notice is given in the three days, the equipment is taken to be accepted.
4. Removal
4.1
Disconnection, rigging and transport
The buyer arranges and pays for disconnection by a licensed electrician, rigging, transport and reinstallation, and removes the equipment by 2 October 2027. The seller gives access from 7.00 am to 3.00 pm on weekdays, provides the forklift operator at no charge, and gives the rigger the floor plan showing the service pit.
4.2
Making good and equipment left behind
The buyer makes good any damage its removal causes to the floor, the walls, the doors or the switchboard, within 10 business days. Equipment still on site after 2 October 2027 is charged storage of $60 a day, and after 30 days the seller may sell it and apply the proceeds against what is owed after giving 14 days written notice.
5. Warranties, safety and general
1.
The seller owns the equipment outright and has the right to sell it.
2.
No money is owed on the equipment and it is under no lease, hire purchase or security interest, and any registered interest is released before the balance is paid.
3.
The equipment is not stolen and no serial number has been altered.
4.
The seller gives no warranty about condition, accuracy, output or fitness for the purpose of the buyer, and the buyer relies on its own inspection under clause 3.
5.
The buyer is responsible for guarding, isolation, testing and safe operation once the equipment is installed at its own site.
5.1
Notices, variation and the whole agreement
Notices are given by email to the addresses the parties use for this sale, a variation takes effect only in writing, and this document with the equipment table is the whole agreement and replaces anything said before signing.
6. Signing
6.1
Execution and the records that go with it
Each party signs below and keeps a copy. Signed with this agreement are the photographs of each machine taken on the day of signing, the search result for the security register, and the floor plan the rigger works from.
For Redgate Engineering Ltd
Name
:
Position
:
Date
:
For Holloway Fabrication Ltd
Name
:
Position
:
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Parties and key facts
Both companies, why the equipment is being sold, and the price, deposit, inspection window and removal date.
1. The equipment
The three row table with serials and prices totalling $26,000, and the faults disclosed.
2. Price, payment and title
Deposit and balance, ownership passing on payment, and risk passing at the lift.
3. Inspection and acceptance
Two days of access to power up and run, and three business days to accept or reject in writing.
4. Removal
Who arranges and pays for the move, access hours, making good and the storage charge.
5. Warranties, safety and general
Five numbered warranties, the exclusion of condition warranties, and notices and variations.
6. Signing
Execution with the photographs, the register search and the rigger floor plan.
Signatures
A block for each company with name, position and date.

Clauses in this document

How to adapt this agreement

For a sale that includes installation and commissioning by the seller, delete the risk at the lift clause and replace it with acceptance testing at the buyer site against a stated tolerance, because once the seller is installing, the buyer is entitled to a working machine rather than a machine as it stood. For a sale of a single item collected by the buyer in a ute, cut sections 3 and 4 down to a single inspection and collection clause, since three business days of acceptance on a $900 bench grinder is more process than the deal deserves. For equipment with finance owing, add a payout clause naming the financier and pay the balance to them directly, and make the release of the registered interest a condition of the buyer paying at all.

Why acceptance matters more than warranty

In a second hand equipment sale the seller is not offering a warranty, so the only real protection the buyer has is the chance to look properly and the right to walk away. That makes section 3 the centre of the agreement rather than section 5. Two days of access with power on, a fitter and a test bar answers most questions about a lathe, and a written acceptance closes the deal cleanly for both sides. An agreement that gives the buyer an open ended right to complain after the machine is installed in its own workshop is worse for everyone: the seller never knows when the sale is final, and the buyer ends up arguing about damage that could have happened during the move.

What makes this document work

Title and risk move at different moments, and both are named

Clause 2.1 passes ownership when the balance is received, so a part paid machine is still the property of the seller. Clause 2.2 then passes risk when the rigger lifts it off the floor. Separating the two is what decides who claims if the machine is dropped in the yard.

Acceptance has a deadline and a format

Three business days after the inspection to accept or reject in writing, with a rejection naming the machine and the defect, and no valid rejection for a fault already disclosed. Silence is acceptance. That single clause converts an open ended handover into a closed one.

Removal is costed, including the part nobody plans for

The buyer pays for disconnection by a licensed electrician, rigging, transport and reinstallation, and the seller supplies the forklift operator free and the floor plan showing the service pit. Clause 4.2 then makes good any damage to the floor or switchboard and charges $60 a day for anything left after 2 October.

Questions people ask

What should an equipment sale agreement include?

Each machine with its serial number and price, the condition it is sold in and the faults disclosed, the price and payment terms, when title and risk pass, an inspection and acceptance process, who arranges and pays for removal, and what happens to anything left behind.

When does ownership of used equipment pass?

Here, on payment of the balance in cleared funds, not on delivery. Clause 2.1 says so explicitly and adds that the equipment stays the property of the seller until then even if part of the price has been paid, which protects the seller if the buyer becomes insolvent between deposit and balance.

Should a buyer of used machinery run a finance search?

Yes. Equipment is a common subject of a registered security interest. The warranty list in section 5 requires the seller to release any registered interest before the balance is paid, and a buyer searching the register by serial number before payment is the practical way to check that promise.

Can a seller of used equipment exclude warranties?

Between two businesses buying equipment for business use, largely yes, and warranty four does exactly that. The buyer relies on its own inspection under section 3 instead. What a seller cannot do is misstate ownership, security interests or theft history, which is why those sit as positive promises.

Who pays for rigging and transport?

The buyer, under clause 4.1, along with disconnection by a licensed electrician and reinstallation at its own site. The seller provides access on weekdays between 7.00 am and 3.00 pm, a forklift operator for loading at no charge, and the floor plan showing the service pit so the rigger can plan the lift.

What happens if the equipment is not collected on time?

Clause 4.2 charges $60 a day storage after 2 October 2027, and after 30 days allows the seller to sell the equipment and apply the proceeds against what is owed, after giving 14 days written notice. That clause exists because a sold machine sitting on a leased floor costs the seller rent.

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Sources

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