Sealing the Deal: Your Ultimate Guide to Drafting Sales Agreements in Tanzania

Whats is sale agreement?

A sale agreement, also known as a sales contract or a purchase agreement, is a legally binding document that outlines the terms and conditions of a transaction between a buyer and a seller.

It is used when one party agrees to buy goods, services, or property from another party. 

In Tanzania governed by The law of Contract Act. Here is a sample of Sale agreement in Tanzania.

SALE AGREEMENT

THIS AGREEMENT is made this ……….. day of ………………… , …….

BETWEEN

XXX…………………………….. of P. O Box ……..(hereinafter referred to as the

VENDOR) of the one part,

AND

YYY………….. of P. O. Box ……………. (hereinafter referred to as the PURCHASER)

of the other part.

WHEREAS the VENDOR is the lawful owner of………………………………..………………………………………………………………………………………

AND WHEREAS the VENDOR is desirous of selling and the PURCHASER is

desirous of buying ………………………………………………………………..

NOW THIS AGREEMENT WITNESSES as follows:

1. That in consideration of the total sum of T. Shs. …………(say, ……………..only) the VENDOR sells and the PURCHASER buys the……………………………………………………………

2. That by executing this Agreement the VENDOR acknowledges to have received the purchase price in full from the PURCHASER.

3. That upon execution of this Agreement the VENDOR shall give to the PURCHASER all necessary documents evidencing ownership of the …………

4. That the VENDOR shall assist the PURCHASER to have the ………… formally transferred to the latter.

5. That in the event the necessary consent is withheld and or registration of the property in favour of the PURCHASER is not obtained the VENDOR shall refund the purchase price that has been paid.

IN WITNESS WHEREOF the parties hereto have executed these presents on the day and date first above written.

SIGNED and DELIVERED by the )

said …………………………………… ) ………………

who is personally known to me in my ) VENDOR

presence this ……. day of …….., …… )

Name: ………………………………

Signature: ………………………………

Postal Address:………………………………

………………………………

Qualification: ………………………………

SIGNED and DELIVERED by the )

said ……………………. who )

has been identified to me by )

……………………………….. ) ……..…………

the latter being personally known ) PURCHASER

to me in my presence this ………. )

day of ………….., …….. )

Name: ……………………………….

Signature: ……………………………….

Postal Address:………………………………

……………………………….

Qualification: ……………………………….

The sale agreement typically includes the following key elements:

Parties involved: The names and contact information of the buyer and the seller.

Description of the subject matter: A detailed description of the goods, services, or property being sold. This could include specifications, quantities, quality, and any other relevant details.

Purchase price: The agreed-upon price that the buyer will pay to the seller in exchange for the subject matter of the agreement.

Payment terms: How and when the payment will be made, including any installment options or specific conditions related to the payment.

Delivery terms: If applicable, details about how and when the goods or services will be delivered to the buyer.

Terms and conditions: Any specific conditions or requirements that both parties need to fulfill, such as inspections, warranties, or obligations.

Timeframe: The timeframe within which the transaction is expected to be completed.

Termination or cancellation clause: The circumstances under which either party can terminate or cancel the agreement.

Governing law: The legal jurisdiction under which the sale agreement is governed and any dispute resolution mechanisms. In Tanzaia the law of contract Act.

Signatures: The agreement should be signed by both the buyer and the seller to make it legally enforceable. This is crucial aspects so as to be effectual.

Conclusion

Sale agreements serve as a legal safeguard for both the buyer and the seller, as they clearly define the rights and obligations of each party and protect them in case of any disputes or breaches of contract.

It’s good to adhere elements of Legal contract before signing a contract with anyone.