1. Commission and Fee Structure

Always confirm:

• The exact commission rate (flat or percentage-based)
• Who pays for rigging, cleaning, or marketing
• If there are reimbursable expenses or hidden fees

Tip: Ask for a complete written cost breakdown — upfront transparency prevents future disputes.

2. Payment Terms

When and how will you get paid?

• Is there a defined payout timeline (e.g. net 15 or net 30)?
• Will funds be held in escrow or disbursed after pickup?
• How are buyer defaults or payment failures handled?

3. Reserve Pricing and Sale Authority

Do you have the right to set minimum prices (reserves)? Does the liquidator have authority to:

• Lower your reserve?
• Accept offers below market value?
• Negotiate without your approval?

Important: If no reserve is listed, the item may sell for far less than expected.

4. Liability and Indemnification

Who is responsible if equipment is damaged, lost, or causes injury?

• Some contracts shift all liability to the seller
• Others provide insurance or hold the liquidator accountable

Read the indemnity language carefully to avoid unexpected legal exposure.

5. Title and Ownership Warranty

You may be required to legally affirm that:

• You are the rightful owner of the asset
• No liens or encumbrances exist

Warning: Misrepresenting ownership can lead to serious legal consequences.

6. Dispute Resolution

In the event of disagreement, how will it be resolved?

• Is arbitration required before going to court?
• Which state’s laws govern the contract?
• Is mediation an option?

Pro Tip: Contracts under California law may offer more familiarity and protection to U.S.-based sellers.

7. Termination Clauses

Can you cancel the agreement if:

• You change your mind?
• The auction firm underperforms?

Review penalties, notice periods, and early-exit provisions before you commit.

8. Buyer Terms That May Affect You

Some contracts bind sellers to buyer-facing policies like:

• Pickup time windows
• Refund procedures
• “As-is, where-is” disclaimers

Make sure you know what you’re legally agreeing to provide — especially regarding post-sale obligations.

Why Contract Clarity Matters

• Reduces the risk of delays, chargebacks, or litigation
• Supports clean financial reporting and audits
• Helps build trust between you and your liquidation partner

Our Commitment at Surplus Cascade

We use straightforward contracts, written in plain English — with no fine print. Our team walks every client through key clauses and answers all your questions before anything is signed.

Want help reviewing a liquidation agreement?
📧 sales@surpluscascade.com
🌐 www.surpluscascade.com — Get expert guidance before you commit.