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Download purchase agreement template in Microsoft Word format.
Purchase Agreement Template: Don’t Buy or Sell Without One
Are you planning on either buying or selling an expensive item from a private party in the near future? Have you considered developing some type of documentation to ensure this transaction is legally binding? If you said yes to both of these questions, you may be able to benefit from a purchase agreement template. In this article we will briefly describe what is meant by the term “purchase agreement,” and outline some of the topics and language that should be included in any quality template of this kind.
What Is a Purchase Agreement?
When you go into a store to buy something, whether you’re buying a big screen television or a tube of toothpaste, one of the things you expect after completing your transaction is a receipt from the selling company. This receipt usually describes what was purchased, lists the price that you paid and may even include information such as how and when to return or exchange the item if you’re not satisfied. But what happens when you sell or purchase something to or from a private party? Are you protected if something should go wrong with this purchase? Unless you enter into a purchase agreement, the answer is “no.”
A purchase agreement is really nothing more than an informal contract between buyer and seller. It states, in detail, what was purchased, gives a full description of that purchase, indicates how much was paid for the item and provides the terms of the transaction of which both buyer and seller agrees on. Purchase agreements are usually formed for larger and more expensive items (cars, boats, jewelry, furniture, etc.), protecting the buyer from getting “ripped off” and the seller from any potential liability with regard to that purchase.
What Should a Purchase Agreement Template Contain?
Purchase agreements are not that difficult to construct, but why write your own when there are so many quality templates already available online? Here, however, are just a few things to look for to ensure the template you choose can serve as a legal contract.
• Date. The date of the transaction must be recorded in order to make the transaction legally binding.
• Seller/Buyer. The names of the two parties entering into the contract, the buyer and the seller, along with each of their contact information, needs to be entered into the template.
• Item Description. A full description of the item(s) being purchased, including serial number when applicable, should always be written on the agreement.
• Purchase Price. Here you will list the total dollar amount changing hands.
• Terms of the Agreement. In this section, the two parties must come to an agreement with regard to the terms of the purchase. Here is where you can describe things like release of liability and your refund policy if applicable.
• Signatures. No purchase agreement becomes legal until it is signed (and in some cases, witnessed by a third party) by both the buyer and the seller.
A purchase agreement template is the ideal way to formalize any large purchase between private parties. It protects both buyer and seller equally and can be used as legal proof in a court of law if there is ever some type of dispute involving the item that was sold.