If you are working on a purchase agreement template, you might have been looking at simple purchase agreement documents or purchase contract documents that have been written for other businesses. The problem with using the purchase agreement forms that other businesses have been using is that the details of these contracts need to be specifically created for your company and your purchase needs.

Creating a purchase and sales agreement template does not have to be difficult. If you want to write a really authoritative purchase agreement example that you can use for all of your future purchase agreement needs, you need to understand all the parts of the contract in question. The more that you know about the purchase agreement contract style, the more likely it will be that you will write a purchase agreement template that will work perfectly for your needs.

Purchase Agreement
Purchase Agreement Download for Word

Purchase Agreement Templates

Asset Purchase Agreement
Asset Purchase Agreement Download for Word
Share Purchase Agreement
Share Purchase Agreement Download for Word

What is a Purchase Agreement Used for?

Purchase agreement templates are used for the purchase of a property, a car, or any other item. You will be able to define the terms and the conditions for both the buyer and the seller in this document. You can also add unique and special details that might need to be outlined related to the sale. The more unique your sale, the more detail you will need to include in your purchase agreement.

This document is a legal document between a buyer and a seller. It will protect both parties from confusion about the details of the purchase, and it will outline the legal information that is necessary to outline breaches of contract, things that make the contract invalid, and other information.

Simple purchases might be covered readily by a simple bill of sale or a receipt, but more complex sales processes will often require a more detailed purchase agreement to be put into place. This is particularly true if you are allowing the purchase to be made through installment payments.

Some other names for this document are:

  • Purchase Contract
  • Purchase and Sale Agreement

These other names are valid, and you can refer to this legal document by this name as well without issue. A purchase agreement cannot prove ownership, however, and you will need to have a bill of sale that is signed by all the involved parties to finalize the sale and officially transfer the item from the seller to the buyer.

What Are Some Situations Where You Might Need a Purchase Agreement?

If you are not sure about when you might need a purchase agreement, these are the most common reasons that someone will need a purchase agreement to be in place:

Even if you are not buying something for business purposes, you will want to use an official document like a purchase agreement template. Sales that are done with a handshake only can be risky if there are various details that need to be covered or handled by each of the parties involved. It is always better to have a document on file that covers the details of your purchase and explains what each of the parties involved in the sale needs to do to follow the purchase agreement and make the sale final.

Business Purchase Agreements

How do you Write a Simple Purchase Agreement?

Simple purchase agreements might not need as many details as more complex sales. If the payment is to be done in a lump sum payment and there are no stipulations or other considerations to document, you might not need to include lots of detail in your simple purchase agreement. Simple purchase agreements might be used for selling your own car to another private buyer, for the sale of furniture or other items that are not readily paid for with a small amount of cash, or anything that you want to document the sale of in case of future questions about the sale.

These simple purchase agreements might just need the name of both the buyer and seller and the name of the item that is being sold. The agreed-upon sales price will need to be listed, and the terms of the sale can be mentioned. Usually, this agreement can just be signed when cash is passed from buyer to seller, and each party can take a copy to finalize the sale.

There will probably not be any need to include liability and terms to be discussed in this kind of sale, and you will likely not need to write into the contract any kind of information about the state laws and regulations that govern the sale. Simple purchases just require that the sale itself be documented and nothing else.  There is not likely to be any need to revisit the documentation again in the future, and there is no ongoing installment payment plan that might cause conflict or confusion in the future either. Simple sales will usually only require a document that proves that the sale was made with the knowledge of both parties, and that is enough to satisfy the needs of this document’s purpose.

The Simple Purchase Agreement Templates

How do I Write a Purchase Agreement?

Writing a purchase agreement template does not have to be hard. There are some sections that need to be included in these documents to make sure that the purchase agreement is valid and can be enforceable in the future if there is a dispute or conflict over the nature of the sale and the payment that was done to complete the sale. Make sure that these sections are included in your purchase agreement template to ensure that your purchase agreement is valid and can be used in a court of law if need be.

  1. Buyer and Seller Information. Buyer’s and seller’s information need to be included in these documents in complete detail. The legal names of all of the parties that are buying or selling the item in question need to be listed, along with addresses and phone numbers if possible. The more information that is used to identify the parties that are involved in the sale, the better. This helps identify the parties who are responsible for the execution of the agreement and makes sure that there is no confusion about who has agreed to buy or sell this item or asset. These people all need to be named on individual lines at the top of the contract.
  2. Description of the Property or Asset Being Sold. The item or asset that is being sold needs to be described in detail. If there are multiple items that are included in the sale, each of them needs to be described in explicit detail. There are some items that are so simple that they will not need to be described so accurately, but you will find that most items that require a purchase agreement to protect them during a sale will necessitate a descriptive section that covers a lot of the relative information about them.
  3. List Price of the Item. The listed price of the stated price of the item needs to be described in this part of the purchase agreement. This is the agreed-upon price that will be paid in total for the item, which can include interest and other fees that are assessed as part of the sale.
  4. Payment. The way that payment will be made needs to be discussed in this part of the purchase agreement template. You can discuss installment payment terms and other conditions that you might want to build into the way that payment is handled during the execution of the sale as well. There are various ways that this part of the process can be handled, and you can detail this payment information in keeping with the way that you and the buyer have decided to arrange the sale.
  5. Delivery of the Item. The item that is being purchased can be delivered per any agreement that you and the buyer have determined is fair for both parties. You will just need to use this section to explain the way that the delivery will be handled so that there is no confusion about this part of the contract. This is particularly important when delivery will be done in the future and not at the time that the contract was signed. If the party that is paying for the item cannot take delivery until a set number of payments are made, this information will need to be detailed in the purchase agreement template as well as the delivery date itself.
    Delivery can be one of the parts of the sale process that can lead to the most confusion or strife, so the more detail that is included in this part of the contract, the better. Make sure that you and the buyer have determined the way that you want this part of the process to be handled, and then record it faithfully per the agreement that has been discussed. This will eliminate confusion and will make it easy to point at the agreement that has been laid out in the contract in writing if there is a dispute about payment.
  6. Terms and Conditions. Any limiting terms or conditions that need to be outlined will need to be added to the contract in this section. This might be a discussion about how many payments need to be made before the item can be released to the new owner or limitations related to down payments or other fees and interest that might be involved in the sale. Liability waivers can be included in this part of the contract as well.
    There might be any number of specific details that you want to include in the sale documentation, and you can add them here for the sake of clarity. You will have a much better sales experience if you ensure that the specifics are laid out in this part of the contract so that there is no disagreement later about how the sale is to be completed.
  7. Signatures. Every person that is involved in the purchase agreement process and the sale and purchase needs to sign the document and date their signature. If there is even one signature missing on the document, the purchase agreement template will be invalid. You cannot afford to miss any of the signatures in this part of the contract if you want the contract to hold up to scrutiny. While you might not end up disputing any part of the contract with the buyer, if there is any disagreement about the sales process and the document is not properly signed, you will not be able to point to the purchase agreement document as proof of the terms of the sale.
    Signatures are very important to any document that is meant to detail or govern a sale, and you need to be sure that you do not miss this critical step with any legal document that you draft.

Asset Purchase Agreements

Purchase Agreement Templates Are Very Important for Most Sales

No matter what kind of sale you are agreeing to or documenting, a purchase agreement is important to the process. This is the legal document that governs how the sale will be completed, and any stipulations that need to be included in the sale process need to be documented in this agreement. The more clarity that is offered in the purchase agreement document, the more likely it will be that your sale will be smooth and conflict-free. You will be glad that you took the time to include all the right information in your purchase agreement if there is ever any question about the nature of the sale or the processes that must be completed to finalize it.

Purchase agreement documents can be used to protect both parties in any kind of sale, both small or large. You might be selling something with a single payment, or you could set up your purchase agreement to include installment payments or specialty considerations before the item is released to the buyer. The signature section of this document will certify that both parties are aware of the terms of the purchase and have agreed to execute the purchase as documented in the agreement.

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Tagged:BusinessContractsLegalPurchase Agreement
TemplateLab December 20th, 2022
Ryan Duffy
Ryan Duffy