What Is a Purchase Agreement Template?

A purchase agreement template is a good way to format a purchase order settlement. It features a detailed description of the property and a guarantee. A purchase agreement is used to transfer private property to a purchaser. It is best to use a purchase agreement if your personal private property (property apart from actual property or an automobile) will likely be offered or transferred to a different party and you wish to have more documentation than a canceled check.

Before you hand over your heirloom jewelry or customized mountain bike, write up a purchase agreement to create a report of the sale. Clients and sellers each profit from having the small details in writing, particularly if the products concerned are useful. Please note that a purchase order and sale settlement can't be used to exchange actual property. It is simply used to forgo the formalities when you're purchasing from a person. However, when you're coping with costly private property, you will need a report of the sale.

Sales Agreement

A sales agreement is also referred to as a sales contract or sales of items contract. It is used to specify the stages of a transaction between two events. When creating your sales agreement, clearly describe the merchandise and/or service being sold. This could include a description and the amount being offered.

Parties in a Sales Agreement

Parties in a sales agreement include the purchaser (the person or company buying a good or service from a vendor) and the vendor (the person or company promoting a good or service).

Determining Payment Details

In a service contract, you'll need to determine a cost plan. Fees can be paid in the following forms, among others:

  • Money
  • Certified check
  • Promissory note
  • Bank draft
  • PayPal

The vendor should present a receipt to the client for transactions involving money. A deposit is a specified amount of cash the purchaser provides to a vendor as assurance that they will comply with the transaction. If the client chooses to buy the item, the deposit will go towards the purchase price.

The deposit could be refundable or nonrefundable, which means that the deposit is returned to the client or kept by the vendor if the deal doesn't go through. It is very important to specify the payment due dates for each payment, the total cost itself, and the deposit in the sales agreement, if relevant, to make the transaction terms clear.

Will the Goods Be Delivered?

If you want, you can include terms relating to the place the products will likely be delivered. This may be the purchaser's location, the vendor's location, or another specified place. The vendor could be compensated after the client has acquired the products, the vendor has shipped them, or an invoice of sale has been created.

Sales Agreement vs. Bill of Sale

Whereas a sales settlement and a bill of sale have related features, a sales settlement gives an extra detailed cost plan and warranties on the merchandise. It also allows each party extra flexibility before finishing the settlement by arranging terms to protect items before they're bought. A bill of sale is a form evidencing that a merchandise's possession has been transferred from one party to another. A bill of sale can be used as part of a sales agreement to show that the products formally changed hands.

Liability, Warranties, and "As Is" in a Sales Agreement

Legal responsibility addresses the products' threat of loss or injury. Legal responsibility could be transferred to the client as soon as he or she:

  • Has possession by a bill of sale
  • Obtains the products
  • The vendor ships the products

Guarantee refers to the promise the vendor makes in regard to the high quality of products. Some of the promises a buyer can make regarding an item are as follows:

  • They own it (e.g. the vendor bought the automobile from a dealership)
  • The merchandise has no claims or loans against it (e.g. there aren't any outstanding liens on an automobile).
  • The products are fit to be used (e.g. the bike is fit for riding)
  • The merchandise doesn't infringe on patents or logos (e.g. the vendor's invention will not be a duplicate of another person's patented design)

If you need help with a purchase agreement template, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.