Purchase Agreement Basics
Purchase agreements are required in a number of scenarios. Interstate commerce requires that purchase agreements are included with any shipments. International commerce requires purchase agreements in order to pass the item through a customs office. The government also requires a purchase agreement for tax purposes.
When buying or selling machinery online, you need to gather, complete and exchange specific documents before a sale can be finalized. The bill of sale — sometimes called a purchase agreement — varies slightly according to the item you’re selling. There are plenty of online templates that can be used or easily adapted for your transaction. While purchase agreements for equipment doesn’t need to be overly complex, these details should always be included:
- Total purchase price
- Purchase date
- Details as to how payment will be completed – especially if there are multiple payments or payment is contingent on items like repairs, completed projects or inspections.
- Current location and condition of the item being sold
- Description (make, model and any upgrades)
- Name/address of buyer and seller
- Seller’s statement of ownership
- Item(s) being sold and any warranties or representations, or whether the item is being sold ‘as-is’
- Dated signatures of the buyer(s) and seller(s)
- Jurisdiction of disputes
Aside from the bill of sale, the seller should provide warranty details, maintenance records and any other documentation before the final sale of the machinery. While usually not required, notarizing all paperwork to validate signatures is wise.