Use a purchase agreement, also called a sale of goods agreement, to record the important terms of an 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. This 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!
When creating a purchase agreement, you will need to be able to provide some basic information about the parties involved and the basic terms they are willing to agree to.
Continue with our purchase agreement questionnaire, which will help guide you through the considerations involved in creating a purchase agreement. Note that the questions presented will change depending on your answers. This allows the form to be tailored to your specific needs.
Read through your agreement, noting any errors you find along the way. If you need to make textual edits, you may do so by downloading and opening the agreement in Microsoft Word, Google Docs, or a similar word processor that accepts .docx format. If no edits are needed, you can download the .pdf version instead for signing. Note that the parties have the option to use electronic signatures if they want to avoid pen and paper. This has the added benefit of giving the parties an electronic copy for easier storage.
You can also use a notary to witness the parties sign the agreement. While this is optional, using a notary provides stronger evidence of the validity of the document if there is ever a dispute. When using a notary, be sure to wait to sign the agreement until you are with them.
Once the agreement is fully executed, give a copy to each party. Store your copy in a safe location, and make an electronic backup if possible.
It is a good idea to periodically review the terms of the agreement so that you can verify that the parties are fulfilling their obligations. Use a contract amendment if you need to make changes or additions to the terms of the agreement after you have signed it.
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.