This guide provides an explanation of the key terms and considerations when creating a purchase agreement. Here we elaborate on the step-by-step guidance we provide you when answering our document questionnaire.
Review the basic steps you will need to follow before and after completing a purchase agreement. This includes tips on gathering information, signing and witnessing your agreement, making periodic updates, and completing related documents.
Use your purchase agreement, also called a sale of goods agreement, to record the important terms of your agreement and specify delivery and shipping instructions.
To begin, enter the names and addresses of the seller and buyer. Later, indicate how many days the buyer has to inspect the goods and then report any problems with the goods to the seller. If the buyer fails to notify the seller of a dispute within the time frame listed, the buyer will be deemed to have fully accepted the goods and can no longer contest the matter. Similarly, state how many days each party has to fix a violation of the agreement after being notified of a violation. This means that if a party violates the agreement and does not fix the issue within the time frame specified, then the other party has the right to cancel the contract and recoup any losses.
Another important question has to do with which party will be responsible for the goods while they are in transit to the buyer. For instance, if you choose for the seller to be responsible, then the seller will bear the risk of loss should the goods be damaged or lost. That means that the seller would still be required to send replacement goods or give the buyer a discount or refund. If the buyer is responsible for the goods during shipment, then the buyer cannot receive any refund or replacement should the goods be damaged or stolen during transit.
Although using a notary public to witness the parties sign the document is not required by law, it is always recommended that you use a notary to witness the document if possible. This will help prove the authenticity of the document if there is ever a dispute in the future. If the buyer and seller are in different locations and want to have the document notarized, then they will each need to get it notarized separately. Your purchase agreement will be considered fully executed once it is completed, signed, and notarized (if included). Then make sure that both parties get a copy of the fully executed agreement and you are done!
As you complete your purchase agreement, you will need to provide certain relevant information. This includes the names and addresses of the borrowers and lenders, repayment terms, delivery and shipment instructions, important deadlines, and any warranties.
Use the information you collected to complete the purchase agreement. We make this easy by guiding you each step of the way and helping you to customize your document to match your specific needs. The questions and information we present to you dynamically change depending on your answers and the state selected.
It is always important to read your document thoroughly to ensure it matches your needs and is free of errors and omissions. After completing the questionnaire, you can make textual changes to your document by downloading it in Microsoft Word. If no changes are needed, you can simply download the PDF version and sign. These downloads are available by navigating to the Documents section of your account dashboard.
Although a notary and witness are not required in most jurisdictions, it is always a good idea to include them. When signing the document, be sure to follow any additional instructions related to signing and witnessing the document. Any such instructions will either be located next to the signature line or in the instructions attached at the end of the document.
When using a notary or other witness, you must wait to sign the document until they are present.
At a minimum, all parties that sign the document should receive a copy once it is fully executed (everyone has signed). Other interested parties may need or want copies as well. Be sure to store your copy in a safe location. It is a good idea to keep both a physical and electronic copy.
It is easy to forget the ins and outs of your purchase agreement. Periodically reviewing it will help you stay familiar with any responsibilities or requirements so that you can determine when it needs changes or additions.
Completing documents such as a loan agreement and promissory note may help offer additional protection. For example, a promissory note lays out the exact terms of repayment. For this reason, it is almost always used in conjunction with a purchase agreement. A loan agreement, if applicable, provides more extensive details and protections regarding repayment.