Purchase Agreements

A purchase agreement is an agreement that is made between the PURCHASER and the SELLER. This kind of an agreement is made when the purchaser wishes to purchase a good or a product or a service from the seller for a certain amount of money. The overall tone of such an agreement should be formal.

A purchase agreement is important because of the fact that it acts as a proof or guide for the period of the contract in case of any misunderstanding or dispute among the parties. It sets down the quantity of the product to be purchased and the other details such as the physical description of the product to avoid any hassles.

The following few points should be kept in mind while framing a purchase agreement:

  1. The personal details of both the parties involved.
  2. The terms and conditions which include the basic duties of the parties during the length of agreement.
  3. The duration of contract along with commencing date is important to give.
  4. The amount of money to be paid and the method of payment is really a vital point to be mentioned in the agreement.
  5. If possible, there should always be a third party which acts as a witness to the proceedings of the agreement.

Category: Purchase Agreements

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