Equipment Sale Agreement template

Equipment sale agreement

This agreement is made on [Date] between [Your company] of [Your address], called the seller, and [Buyer company] of [Buyer address], 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.

1. The equipment

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 [Date] 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 [Date]. 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 [Date] 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

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.