A purchase agreement template is a legal binding contract between buyer and seller. This agreement is generally about selling and buying goods. This type of contract sets up the terms and conditions for the purchase of goods or items. A purchase agreement can be used for either big or small transactions between different people. Moreover, these agreements are usually used in the real estate, manufacturing or telecommunication industries. If an organization is buying goods or items from another organization, the purchase contract is considered to be the legal document of the purchase.
Importance of Purchase Agreement
It is important to sign a purchase agreement before any transactions are made by the buyer or seller. A contract is of no use if it is not signed by both parties. We can say that a purchase agreement is a commitment to another person or party about making a purchase. It is an official paper used by one party throughout their business deal and several negotiations can take place too.
How to Prepare a Purchase Agreement?
The following are some elements which are included in the purchase agreement making:
Identification of both parties: it is important to write the full legal names and correct contact information of both individuals and companies.
Proper Product Description: All details should be properly stated regarding the product. There should be no uncertainly, everything must be clear. For example, if describing a product, mention its quantity and specifications.
Agreed price rate: Mention the price of the product or property that is being purchased from the seller.
Payment Clause: It is necessary to include how the payment will be made of the purchase item (in cash, bank transfer, cheque, bonds, shares).
Way to Deliver: This includes how and when the product will be delivered to the person who bought it. In the case of property, when the seller gives ownership documents to the buyer.
Closing Date: The chosen date on which both the parties will come together to sign or to close the deal by signing the purchase agreement.
Assurance: State any assurance or warranty that the seller has mentioned when making a deal with the other party. A seller might make some warranty regarding the quality or maintenance of the product.
Down payment: Both parties will agree on some proportion of money that the buyer will pay as a down payment or deposit to the seller at the time of sealing the deal. That deposit will be put in a security account till the completion of the transaction.
Conflicts: It is better to state, if disputes or conflicts arise in future, how the parties will overcome or solve them. Either by opting for arbitration or the mediation method. It is essential to think ahead of these situations because uncertainty can arise at any time, so it’s better to be prepared for it.
While handling purchase agreements efficiently, it is important to pay close attention to certain things like payments, final documentation, and renegotiation. It is also important to ensure that parties will follow the terms and conditions according to the agreement.
Templates for Purchase Agreement
Source: acc.com
Source: www.business-in-a-box.com
Source: www.wordstemplates.org
Source: www.wordstemplates.org