A purchase agreement is a contract for the purchase and sale of goods, property, services, or assets.
- Purchasing goods, property, services, or assets.
- Selling goods, property, services, or assets.
A purchase agreement is a legal contract that sets in motion some exchange of products, services, real estate, or other assets. This broad category of contracts can be used as a basis for nearly any transaction to take place. As a result, they can and should be crafted to provide an effective framework for a particular transaction based on the facts and circumstances of that specific exchange. A purchase agreement documents key features of a business transaction. It describes the goods, services, products, or assets being purchased and their price. A purchase agreement can also be used as legal documentation of ownership in the case of a dispute. For example, if you spent substantial time and expense preparing a shipment for a large purchase, and the customer backs out at the last minute, you can use the purchase agreement to prove that a contract for the order was made. Of course, the customer can back out of an agreement if it is no longer workable, but if you have an executed purchase agreement you may be able to recover some of your expenses related to the cancelled order in court. Most business transactions require careful planning. The parties to the exchange must consider how real and intellectual property will be dealt with, how business owners and employees may be impacted, and what should happen in the event that either party breaches the terms of the sale. This purchase agreement addresses the common issues associated with business purchases and provides individuals involved in these transactions with a basic framework for the exchange.