A purchase contract is a legal document that is specifically designed for some buying and selling purposes between the two parties who are intended to enter in this purchasing relationship. The purchase contract is actually a written document to show that two individuals or some parties have agreed upon buying and selling of a product on mutual consent basis and if hereby later on any of the party disagrees or deny the a lawsuit can be filed against that party.
Usually purchase contracts are signed for long term business purposes or by the large scale business companies against the open tenders in order to ensure the timely supply of the accurate materials and services. Here is a sample Purchase Contract Template,
There may be different kinds of the purchase contracts depending upon the purpose it denotes;
- Purchase contracts for Real Estate
- Purchase contracts for Services and management
- Purchase contracts for instruments
- Purchase contracts for Vehicles
- Purchase contracts for sale of goods
Necessary Elements of the purchase contract:
There are few necessary articles that must be included while assembling any sort of the purchase contract which would not be otherwise legally valid.
Article I: It should describe the details of the individuals or the parties which are intended to enter in this buying and selling procedure along with their complete corporate details and valid addresses.
Article II: This should indicate the witnesses of the agreement in the presence of whom the agreement is going to take place. It is preferred to have some legal advisor as a witness so that the lateral complications can be avoided.
Article III: In the next article the details of the product that is to be purchased are given. All the sufficient subject knowledge, quantity along with the purpose of its use is also given. If it is a Real estate then the location details, size and conditions should be mentioned clearly in this annexure.
Article IV: This should give the details about the delivery methods and delivery dates. In this section the date of the contract and the validity period along with all other important dates of upcoming events should also be indicated.
Article V: All the necessary terms and conditions for the purchase of a particular object should be given in this section, upon which the agreement of both the parties is considered to be important and mandatory. The necessary price details can also be given in this section.
Article VI: This section should indicate the information about the applicable jurisdiction or court and all the cases against which the lawsuit can be filed or any legal action can be held against the defaulter.
Advantages of the Purchase Contract:
The Purchase contract is a useful strategy adapted by the modern investors and businessmen in order to ensure the eminent supply of the materials in addition to the quality of the materials. For the rights of a Seller such contracts ensures the timely payments and helps to avoid the lateral losses and conflicts. In short the purchase contract is just like a knot that binds the seller and buyer together.
Here is download link for this Purchase Contract Template,