What Is a Purchase Agreement?
This is the type of agreement made when there is a transaction between two or more parties. Its purpose is to identify which party member is the buyer and which one is the seller, along with pointing out all matters concerning the exchange. It guarantees that whoever signs the agreement has accepted all the terms and conditions in order to acquire whatever goods and/or services being offered.
How to Write a Sales Agreement?
1. Start With the Basics
Your purchase or sales agreement must always point out who exactly is involved. List down the full names of both the buyer and seller along with their addresses. Then you must provide the goods and/or services that are involved in the purchase. Make sure that you write down the full legal description of whatever it is that you put into the document. The point of this is to provide a clear definition of what is being purchased to avoid any problems.
2. State What Will be Given in Exchange
Next is to point out exactly what it is that the buyer will provide the seller in exchange for the goods/services being purchased. Although this usually comes in the form of money, that won't always be the case. There are certain purchase contracts wherein the buyer may be required to provide goods/services or any other types of promise in order to acquire what he/she wishes to purchase. Be sure to make it clear as to what that may be.
3. Point Out the Seller's Representations
A “representation” is a statement of fact which the seller warrants are true at the time of the agreement. In the event that any of the representations have been found out as false, then the buyer has the right to cancel the purchase agreement or even sue the seller. When writing these down, be sure that you provide all the necessary details in order to avoid confusion or misunderstandings.
4. Include How Disputes Should be Settled
Even a simple purchase agreement must contain a clause on how disputes between the buyer and seller should be handled. Although this all depends on how the parties involved agree to settle them, it is important to point out exactly how to keep disputes out of court and settled. This can lead to the difference of those involved solving it themselves or leaving things up to a judge to decide.
5. Put in a Termination Clause
It is very important that the document contains a clause on what may force the purchase agreement to be terminated. It should also be able to point out exactly how either party may exit the agreement or simple contract without the fear of being held responsible for breaching whatever obligations they were meant to fulfill.
6. Place Spaces for Signatures
At the end of the agreement, there need to be spaces where both the buyer and seller can place their full names and signatures. Having them on the document shows that they have agreed to the terms and are willing to push through with the exchange.