Legal Definitions - sales in gross

A sale in gross refers to a transaction where an entire property or a collection of items is sold for a single, lump-sum price, without the price being dependent on an exact measurement, count, or specific quantity of the individual components. In such a sale, the buyer agrees to purchase the whole lot "as is" for a fixed sum, even if the actual quantity or size turns out to be slightly different from what was estimated or stated. The risk of minor variations in quantity typically falls on the buyer.

Here are some examples to illustrate this concept:

• Real Estate Transaction: A landowner decides to sell their entire rural property, which they believe to be approximately 50 acres, for a fixed price of $250,000. The sales contract specifies "the entire parcel known as Green Valley Ranch" for $250,000, rather than stating a price per acre. Later, a new survey reveals the property is actually 48.5 acres. Because it was a sale in gross, the buyer is still obligated to pay the full $250,000, as the agreement was for the entire property as a whole, not based on an exact per-acre valuation.

• Bulk Inventory Sale: A clothing boutique is going out of business and sells all its remaining winter inventory to a liquidator for a flat fee of $15,000. The agreement states "all remaining winter coats, sweaters, and accessories currently in stock." The liquidator does not conduct a precise count of every single item. This is a sale in gross because the price is for the entire collection of goods, regardless of whether there are exactly 500 or 550 individual items. The $15,000 price is fixed for the whole lot.

• Agricultural Harvest: A farmer sells the entire yield of a specific apple orchard to a cider company for a predetermined price of $30,000. The contract specifies "the entire harvest from Orchard A for the current season." The price is not based on the exact number of bushels or pounds of apples ultimately picked. If the harvest yields slightly more or less than anticipated, the $30,000 price remains unchanged because the sale was for the entire output of that specific orchard, considered as a single unit.