Purchase Agreement Help Guide

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. 


Party Information and Inspection

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.

Shipment Responsibility

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.

Witnessing Your Document

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!


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