Machinery Sale Agreement Chile (Contrato de Compraventa de Maquinaria)

A Machinery Sale Agreement Chile (Contrato de Compraventa de Maquinaria) is a legally binding commercial contract governed by Articles 130–160 of the Código de Comercio (enacted 23 November 1865) and Articles 1793–1896 of the Código Civil (enacted 14 December 1855, in force 1 January 1857), through which a seller (vendedor) transfers ownership of industrial, agricultural, construction, or mining machinery to a buyer (comprador) in exchange for a price (precio) agreed in Chilean pesos (CLP) or Unidades de Fomento (UF). Article 130 of the Código de Comercio classifies the commercial purchase and sale of movable goods (bienes muebles) for business purposes as a mercantile act (acto mercantil), making machinery sales between commercial entities subject to both the Código de Comercio and the Código Civil in Chile's unitary legal system, with the Juzgados de Letras en lo Civil exercising first-instance jurisdiction and the Cortes de Apelaciones hearing appeals.

The legal framework for machinery sales in Chile integrates multiple statutory sources beyond the core commercial codes. For large industrial machinery used in Chile's dominant extractive sectors, the Código de Minería (Ley 18.248 of 28 September 1983) and the regulations of the Servicio Nacional de Geología y Minería (SERNAGEOMIN) govern specific categories of mining equipment. Machinery used in Chile's agricultural sector operates under the framework of the Servicio Agrícola y Ganadero (SAG) and may be subject to import controls under the Servicio Nacional de Aduanas (Aduanas) when machinery is acquired from foreign manufacturers. Construction equipment is regulated by the Ministerio de Obras Públicas (MOP) framework when used on public infrastructure projects, and by Decreto Supremo No. 10/2003 of the Ministerio del Trabajo (Reglamento de Seguridad Minera) for underground mining operations.

The critical commercial law provisions for machinery sales include: Article 131 of the Código de Comercio, which establishes that in commercial purchases the buyer may demand delivery of the goods and payment or return of the price if the other party fails to fulfill; Article 137 of the Código de Comercio, governing the place and time of delivery (entrega) for commercial goods; Articles 1796–1814 of the Código Civil, which establish the capacity requirements, price determination rules, and formation requirements for valid sale contracts; and Articles 1857–1870 of the Código Civil, which govern the seller's warranty against hidden defects (vicios redhibitorios) — defects that existed at the time of sale but were not apparent to the buyer and that would have led the buyer not to have purchased or to have paid a lower price.

For high-value machinery acquisitions, Chilean commercial practice employs prenda sin desplazamiento (non-possessory pledge) under Ley 4.702/1929 (as superseded by the Ley sobre Prenda Sin Desplazamiento, Ley 18.112 of 16 April 1982, further modified by the Ley 20.190/2007 establishing the Registro de Prendas Sin Desplazamiento at the Servicio de Registro Civil e Identificación) as a security mechanism allowing the buyer to take possession of the machinery while the seller or financing bank retains a registered security interest (prenda) until full payment. The prenda sin desplazamiento must be registered in the Registro de Prendas Sin Desplazamiento maintained by the SRCEI to be effective against third parties under Article 24 of Ley 20.190/2007.

Import of machinery from foreign markets — particularly from suppliers in Germany, the United States, Japan, South Korea, China, and Italy — requires compliance with the Ordenanza de Aduanas (DFL No. 30/2004) under the Servicio Nacional de Aduanas, with customs duties potentially reducible under Chile's free trade agreements: the TLC Chile–European Union (2003), the TLC Chile–United States (2004), the TLC Chile–China (2006, one of Chile's largest trading partners), the TLC Chile–Japan (2007), the TLC Chile–South Korea (2004), and others administered by the Dirección General de Relaciones Económicas Internacionales (DIRECON).

A Machinery Sale Agreement Chile is needed whenever a Chilean company or individual acquires or disposes of industrial, agricultural, construction, or mining machinery in a commercial transaction governed by the Código de Comercio and the Código Civil.

Industrial and manufacturing sector: Chilean manufacturing companies — regulated by the Ministerio de Economía, Fomento y Turismo and the Servicio Nacional de Aduanas for imported equipment — purchase machinery for food processing, textile production, metalworking, and chemical manufacturing under formal Contrato de Compraventa de Maquinaria agreements that establish delivery terms, commissioning obligations, technical acceptance (acta de recepción conforme), and warranty periods. CORFO (Corporación de Fomento de la Producción de Chile) loan programs — including CORFO's Línea de Crédito para la Adquisición de Equipos y Maquinaria — require documented machinery purchase contracts as supporting documentation.

Mining sector: Chile's mining sector — which includes the world's largest copper mine (Chuquicamata, operated by CODELCO) and numerous lithium, gold, silver, and iron operations regulated by SERNAGEOMIN under the Código de Minería (Ley 18.248/1983) — generates enormous demand for specialized machinery purchases including excavators, haul trucks, crushers, processing plants, and underground development equipment. Mining company machinery purchases typically involve multi-million-dollar transactions requiring notarized Contratos de Compraventa de Maquinaria under Chilean law, with prenda sin desplazamiento security under Ley 20.190/2007 for vendor-financed or bank-financed acquisitions.

Agricultural sector: The SAG (Servicio Agrícola y Ganadero) under the Ministerio de Agricultura and INDAP (Instituto de Desarrollo Agropecuario) support agricultural equipment financing for Chilean farmers. Agricultural machinery purchases — tractors, harvesters, irrigation equipment, and processing machinery — require formal Contratos de Compraventa de Maquinaria for access to INDAP credit lines and SAG subsidy programs under Ley 18.910/1990 (Ley Orgánica del INDAP). Agricultural equipment subject to plant health (fitosanitario) or animal health (zoosanitario) controls under SAG regulations must include compliance certifications in the purchase contract.

Construction and infrastructure: Chilean construction companies bidding on MOP (Ministerio de Obras Públicas) concession projects, SERVIU (Servicio de Vivienda y Urbanización) housing developments, or private real estate developments under the Ley General de Urbanismo y Construcciones (DFL No. 458/1976) require heavy construction equipment — excavators, cranes, concrete pumps, formwork systems — acquired under formal machinery purchase contracts. Used machinery acquisitions from international sellers require import documentation under the Ordenanza de Aduanas and customs duty assessment by the Servicio Nacional de Aduanas.

Second-hand machinery: The Chilean market for used industrial machinery — operated through specialized auctions by companies such as Ritchie Bros. (now RB Global), Iron Planet, and local Chilean auctioneers registered with the Ministerio de Economía — requires formal Contrato de Compraventa de Maquinaria documentation regardless of whether the machinery is new or used, with appropriate warranty limitations for second-hand equipment and provisions for technical inspection by the buyer before purchase.

A valid Machinery Sale Agreement Chile under Código de Comercio Articles 130–160 and Código Civil Articles 1793–1896 must contain the following critical elements to ensure legal enforceability, regulatory compliance, and commercial certainty:

Party Identification: Full legal identification of seller (vendedor) and buyer (comprador), including complete legal names, RUT (Rol Único Tributario assigned by the SII), Registro de Comercio inscription for corporate entities, registered addresses, and authorized signatories with valid powers of attorney (mandato) under Código Civil Articles 2116–2173. For Sociedades Anónimas (SA) under Ley 18.046/1981, the signatory requires a board resolution (acuerdo de directorio); for SpAs under Articles 424–446 of the Código de Comercio, authority under the company's estatutos.

Machinery Description: Precise technical identification of the machinery subject to the sale: make, model, serial number, year of manufacture; technical specifications (potencia, capacidad, dimensiones, peso); current operational condition; hours of operation (horas de uso) for used equipment; applicable safety certifications under the Ministerio del Trabajo's Decreto Supremo No. 594/1999 (Reglamento sobre Condiciones Sanitarias y Ambientales Básicas en los Lugares de Trabajo) or Decreto Supremo No. 10/2003 for mining environments; and customs clearance documentation (declaración de importación, número de aceptación aduanera) for imported machinery processed through the Servicio Nacional de Aduanas under the Ordenanza de Aduanas (DFL No. 30/2004).

Purchase Price and Payment Terms: Precise statement of the purchase price denominated in CLP or UF (Unidades de Fomento, indexed daily by the SII), specifying: whether the price is quoted exclusive or inclusive of IVA at 19% under DL 825/1974; the payment modality — cash (contado), installment plan (cuotas) with or without a pagaré notarial under Ley 18.092/1982, documentary credit (crédito documentario), or CORFO credit line financing; payment milestones tied to delivery, installation, and acceptance events; and late payment interest at a rate not exceeding the Tasa Máxima Convencional (TMC) established quarterly by the CMF under Ley 18.010/1981.

Delivery Terms and Risk Transfer: Specific delivery terms including: the place of delivery (lugar de entrega) — ex works (en fábrica), delivered to a named Chilean port or address, or installed on-site; the delivery date or lead time; the party responsible for transportation and insurance during transit; and — critically — the moment at which risk of loss or damage transfers from seller to buyer. Under Article 1820 of the Código Civil (risk rules for sale contracts), risk transfers to the buyer upon contract perfection (perfeccionamiento del contrato) for specific goods (bienes ciertos y determinados), but parties to commercial contracts regularly modify this default rule under Article 1547 of the Código Civil by specifying that risk transfers on delivery and acceptance. Incoterms 2020 (ICC publication) are commonly incorporated in Chilean commercial contracts to define delivery and risk transfer for international machinery purchases, with the specific Incoterm (FOB, CIF, DAP, DDP) stated explicitly.

Installation, Commissioning, and Acceptance: For complex industrial machinery, the contract must address: the seller's obligation (if any) to provide installation and commissioning services; the technical acceptance procedure — typically a formal acta de recepción conforme signed by both parties after a commissioning test demonstrating that the machinery operates in accordance with technical specifications; training obligations for the buyer's operators under Decreto Supremo No. 40/1969 (Reglamento sobre Prevención de Riesgos Profesionales, administered by the Mutual de Seguridad and the ACHS under the Ministerio del Trabajo); and the consequences of technical acceptance failure (recha zo del equipo) triggering the buyer's right to demand repair, replacement, or price reduction under Article 1873 of the Código Civil.

Warranties (Garantías): Specification of warranty obligations including: the seller's warranty against hidden defects (vicios redhibitorios) under Código Civil Articles 1857–1870 — defects that existed at the time of sale, were not apparent to the buyer through ordinary examination, and would have led the buyer not to purchase or to pay less; the duration of the redhibitory action (acción redhibitoria) under Article 1866 of the Código Civil (six months from delivery for movable goods under the default rule, extendable by contract); commercial warranty (garantía comercial) terms for new machinery specifying scope, duration, excluded defects, warranty service locations in Chile, and spare parts availability through the manufacturer's authorized dealer network in Chile.

Prenda Sin Desplazamiento (Non-Possessory Pledge): For vendor-financed or bank-financed machinery purchases, the Contrato de Compraventa de Maquinaria should include prenda sin desplazamiento provisions under Ley 18.112/1982 and Ley 20.190/2007 (which established the centralized Registro de Prendas Sin Desplazamiento at the SRCEI). The prenda must be: constituted in a public instrument (escritura pública) or private instrument authorized by a Notario Público; registered in the RNVM (for machinery classified as a motor vehicle) or the Registro de Prendas Sin Desplazamiento of the SRCEI for other machinery; precisely identify the pledged machinery; specify the secured obligation and the pledge duration; and include default provisions consistent with Articles 14–22 of Ley 20.190/2007 governing prenda enforcement by the pledge holder.

Forms-legal.com provides this Machinery Sale Agreement Chile template as a baseline for industrial equipment purchase transactions. Every high-value machinery acquisition should be reviewed by a licensed Chilean abogado with expertise in commercial law (derecho comercial) and, for imported machinery, by a licensed customs agent (agente de aduanas) registered with the Servicio Nacional de Aduanas under DFL No. 30/2004. Los usuarios de forms-legal.com pueden descargar este documento de forma gratuita en formato PDF o DOCX, completar los campos del formulario guiado y obtener un documento listo para firma.