What is a Sale Agreement?
A purchase or sale agreement is a legal contract which ensures that the seller is obligated to provide what it is that the buyer needs and the buyer compensates for whatever is provided by the seller. This type of agreement can be made for just about any type of purchase. Whether it's for a vehicle, equipment or even for land, it will ensure that the parties involved in the exchange will get something in return for what they are willing to provide.
How to Make a Sale Agreement
1. Point Out the Buyer and Seller
Even the simplest of purchase agreements must contain the individuals or businesses that are involved. So what you will need to do is to write down the complete names of both the buyer and seller, as well as identifying which party member plays what role. If deemed necessary, include additional information such as addresses and contact details.
2. Describe What Is Being Provided
It is important the document is able to provide a list of whatever goods and/or services are to be provided to the buyer. Make sure that you write down the full legal description of every item that you will include in the written contract. Also, mention the means by which it will be provided. For example, motor vehicles that the buyer wishes to have shipped must-have details on the carrier responsible for the shipment, the vehicle's transport energy usage, and the date in which it is expected to arrive.
3. Provide Details Regarding Compensation
The sales agreement must then point out how the buyer will compensate the seller for every item on the contract that has been provided. Start by pointing out the individual prices of each good and/or service, calculate the subtotal, and then add or subtract any discounts or fees to get the grand total. Then point out when exactly the buyer will have to make the payment and the methods of payment that he/she is allowed to use. Be sure to point out exactly what method you'll accept to avoid any issues.
4. Place Any Representations
The seller must provide any representations concerning whatever it is that he/she is providing to the buyer. This is very important as any one of them that have been false will give the buyer the right to sue or at least discuss with the seller regarding how the issue can be resolved. Be sure that each representation is easy to understand so that there were won't be any confusion or misunderstandings. This applies to whether you are making a service or reseller agreement.
5. Provide a Statement on How Disputes Will Be Settled
It is best that both the buyer and the seller discuss how either party should handle any disputes they come across to maintain fairness. They can choose to decide to do it among themselves or they can have a judge make the decision for them. Just make it clear as to how they should do it when providing the statement in the formal contract.
6. Create the Signature Spaces
Whether it's a business sale agreement, real estate partnership agreement or even a horse sale agreement, the end of the document must contain a space where the signatures of both the buyer and seller can be placed. This is to prove that the parties involved have agreed to the terms of the sale and are willing to make the exchange. Make sure to provide their complete names underneath the signatures as well as the exact date in which the agreement is signed.