Sale Agreement
Template contract for the sale of a movable thing (a car, furniture, equipment) between two private persons or businesses under Maltese law. Under article 1347 of the Civil Code (Cap. 16) the sale is complete and ownership passes as soon as the thing and the price are agreed, even before delivery or payment, and the risk passes with it unless the parties agree otherwise. The seller answers for latent defects; the buyer's action for rescission or reduction of price for a movable must be brought within six months of delivery (article 1431). Where the seller is a trader and the buyer a consumer, the Consumer Affairs Act (Cap. 378) adds a two-year legal guarantee that cannot be excluded.
Sale Agreement
SALE AGREEMENT
THE SELLER: [full name], holder of identity card / passport No. [number], of [address].
THE BUYER: [full name], holder of identity card / passport No. [number], of [address].
1. OBJECT
The Seller sells and the Buyer buys the following thing: [description of the asset, make, model, serial number, condition], free from any charge, pledge or third-party claim.
2. PRICE
The agreed price is [amount] EUR ([amount in words]), payable by [means of payment] on delivery / by [date].
3. DELIVERY AND PASSING OF RISK
Delivery of the thing takes place at [place] on [date]. By way of exception to article 1347 of the Civil Code, the parties agree that ownership and the risk of loss or deterioration shall pass to the Buyer upon delivery [and full payment of the price].
4. WARRANTIES
The Seller warrants that he is the lawful owner of the thing, that it is free from undisclosed charges, and answers for latent defects and for eviction as provided by the Civil Code. The Buyer declares having examined the thing.
5. COSTS
Each party bears its own costs relating to this agreement unless otherwise agreed in writing.
6. GOVERNING LAW AND JURISDICTION
This agreement is governed by the laws of Malta, and the Maltese courts shall have jurisdiction over any dispute arising from it.
Signed in duplicate at [place], on [date].
The Seller: ______________________ The Buyer: ______________________
Legal basis
Frequently asked questions
When does ownership pass to the buyer in Malta?
Under article 1347 of the Civil Code ownership passes as soon as the thing and the price are agreed, even if the thing has not been delivered or paid for, and from that moment the risk is the buyer's. The parties may agree otherwise, which is why the template ties ownership and risk to delivery.
How long do I have to complain about a hidden defect?
For a movable, the actio redhibitoria (rescission) and the actio aestimatoria (price reduction) are barred six months after delivery; for an immovable, one year after the contract (article 1431 of the Civil Code). If the defect could not be discovered earlier, the period runs from when it could be discovered.
Does a sale of a movable have to be in writing?
No. A sale of a movable is valid even verbally. A written and signed agreement is still the best proof of what was sold, its condition, the price and the date of delivery, and it is needed in practice to transfer the registration of a vehicle with Transport Malta.