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Agreement for the sale of a used motor vehicle

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Agreement for the sale of a used motor vehicle

1. Offer to purchase

Living in an era where a great percentage of South Africans have access to technology has opened a vast gateway for the sale and purchase of products. This subsequently resulted in templates for sale and purchase agreements becoming increasingly popular with the added benefits of speed and convenience for consumers. It is now possible to create professionally drafted South African templates within minutes.

A template is a professionally designed document which can be used for legal purposes, for business, or even for personal use. This article will set out the legal implications of using templates for an agreement of sale and purchase in South Africa, and identify the considerations that consumers should be mindful of when using a sale and purchase template.


The most common contractual form is the contract of sale and purchase. This type of contract can be briefly described as a legally enforceable agreement between one party to buy goods/services and another party to sell the goods/services. In other words, there should be an offer by the seller and an acceptance of the offer by the buyer.

A contract acts as a guide for the parties to ensure that they have discussed the essential elements of their agreement.

In order for an agreement to be identified as a proper contract of sale and purchase the contract has to have the following essential elements:

2.1 consensus – there must be an agreement between the parties on all material aspects of the contract;
2.2 capacity – the parties must be able to contract;
2.3 formalities – the contract usually has a certain form which needs to be observed;
2.4 legality – the agreement must be lawful;
2.5 possibility – the parties must be able to perform the obligations in terms of the contract;
2.6 certainty – the contract must have a definite content in order for the obligations therein to be enforced


A sale and purchase template should generally contain the following clauses:
3.1 the name, address, identity numbers, and marital status of the buyer and seller;

3.2 a clear description of the item which is being sold;

3.3 the selling price and the form of payment which the buyer and seller agree upon, as well as payment of a deposit, if any;

3.4 whether the sale is subject to the buyer obtaining a loan, if so, the amount of the loan and the date by which the loan must be obtained should be specified;

3.5 confirmation that no amendments to the agreement of sale and purchase are valid unless it is in writing and signed by the buyer and seller or an agent of either party.

South Africans have not only become more familiar with using legal contract templates but are gradually becoming more positive towards it. This can be attributed to the growth of local internet users, the increased use of technological devices, and an enabling legal framework that protects the consumer involved in agreements of sale and purchase.

The provision of legal contract templates has grown significantly in South Africa and it is expected to grow further as more locals are enjoying the ease with which a wide variety of products can be purchased and sold in an easy and convenient manner.

3.6 Benefits of templates for sale and purchase agreements
A large number of South Africans connect to the internet via their mobile devices or computers and therefore these devices are seen as key in growing the online industry.

This is why it is important to note the significance of continually progressing with technology and how the utilization of legal contract templates has also grown exponentially in South Africa. With thousands of templates being produced it has become effortless to search and select a template that meets all the requirements for the type of agreement of purchase and sale you wish to conclude.


4.1 Passing of ownership – in most contracts of sale, the purchaser acquires ownership of the product/service upon execution of the contract of sale.

In terms of immovable property the property is transferred by way of registration in a Deeds Office.

In the case of movable property ownership is transferred upon delivery coupled with payment of the purchase price. 4.2 Risk and benefit – the general rule is that the risk and benefit passes to the buyer once the goods are delivered, unless the agreement of purchase and sale states otherwise.

4.3 Examining the goods – the consumer has the right to examine the goods, and is not responsible for any loss or damage to any goods unless such damage resulted from the negligent or reckless actions of the consumer.


It is important to be aware of the security and privacy issues that are associated with using legal contract templates, such as, fraudulent use of credit cards, computer viruses, unsolicited email messages, and theft of information.

In order to minimize these security and privacy risks you should review the security features offered by the service provider and pay attention to security alerts.

It is also crucial to ensure that you have the appropriate security features for storing information. An example would be SET (secure electronic transaction) that has been developed by Visa and MasterCard, which ensures that sensitive information cannot be seen by the business and is not stored on the website.

Consumers now have the choice of purchasing high quality web designs from premium templates or simply purchasing a more cost effective template that lacks variety but not quality. The supplier of these templates has to ensure that their site runs smoothly with minimal to no difficulty experienced by the consumer, and further that they provide the consumer with complete security of their private information.


Prior to using a template for a sale and purchase agreement, there are certain aspects to keep in mind to ensure that you made the right choice:

6.1 Limited budget –there are numerous cheap templates that are developed online which primarily assist business owners or private individuals with a professional design without the need to pay excessive fees;

6.2 Repetition of legal contract templates – there are thousands of templates being produced and this can result in the same template being used by more than one person. It is sensible to customize the template you have selected so that it is best suited to your needs and has an element of uniqueness;

6.3 Selecting the right design – the template you choose should match your business and aesthetic needs. The template should provide you with both the function and the look that you aim to have;

6.4 Mobile responsive templates – this ensures that consumers receive an ideal experience no matter what type of device they use to view the templates.

6.5 Flexibility of customizing a purchased template – you need to ensure that you choose a template that will allow you to make the necessary changes you wish to have. This secures you from paying for a template with a default design and no room for alteration.

6.6 The most recent template – an outdated template may encounter unexpected functionality issues, and the templates may not be in keeping with the developments of the law.

It is crucial to choose a template that has adapted to these changes in order to avoid the risk of purchasing an invalid template. The content of the template should be clear, lawful and up-to-date.


Advantages Disadvantages Minimizes risk – having a contract will provide the grounds for taking legal action if there is a failure to perform obligations. Not drafted by an attorney – certain clauses may not be in keeping with legal standards. Clarity – the contract will contain all the important details and expectations of each party. Missing provisions – certain key provisions to a contract may be missing from the template.


There is no specific time period of validity, however, there are four instances which make provision for the lapse of the offer: • The sale agreement provides a blank section for the buyer to fill in how long the seller has to accept the offer. The seller in turn has a number of days to either accept or reject the offer. When this period comes to an end the offer is declared null and void.
• If the offer is revoked by the buyer, provided that the agreement does not state that the offer is irrevocable for a certain period and it must be brought to the seller’s attention in that time frame.
• If the seller rejects the offer.
• Death of either party prior to the offer being accepted results in an automatic lapse of the offer. If the offer has been signed and accepted, all rights and duties arising from the contract will be passed to the deceased estate.


Force majeure is an event that occurs which is beyond the control of the parties to the contract, for example, a war, a riot, or a natural disaster.

As a result of the Covid-19 pandemic and the subsequent national lockdown many people who entered into contractual agreements were hindered. For this reason, the parties to a sale and purchase contract may wish to include a force majeure clause which gives the right to either party to suspend the contract until the event passes, or to cancel the contract altogether.


As more South Africans have access to the internet the more transactions are being performed by using legal contract templates for sale and purchase agreements.

When parties negotiate the sale and purchase of goods, they need to give special attention to the relevant written terms of their contract. This will result in more certainty as to whether all the parties involved have the same understanding in respect of each contractual term.

The world of law can be complicated, especially for those who are not trained lawyers, yet it is inescapable. Every single person operates within the law to some degree. This is why it is important to understand the legal implications of using a legal contract template for your agreement of sale and purchase.

___________________________________________________________ Hi, I’m Kailash Pillay, an attorney from the city of Johannesburg. My passion for the law stems from a desire to improve upon the lives of the vulnerable who fall prey to a corrupt system.
I studied at the University of Johannesburg where I obtained my Bachelor of Laws degree, the starting point to the long journey of becoming a legal practitioner. This profession has taught me to persevere through the complexities of the law and to continually develop my skills as a legal professional.

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