Purchaser

The purchaser of property is the party responsible for paying for the property. If a purchaser fails to pay for the property, or does not fulfill the terms of the purchase agreement, he can legally be held liable by the seller.

Seller

The seller is the party agreeing to exchange a piece of property for monetary reimbursement. If the seller fails to provide the property in accordance with the terms of the purchase agreement, she can be held legally liable to do so by the purchaser.

Types Of Purchase Agreements

A purchase agreement is commonly used in the sale of real estate or a home, a motor vehicle and even retail goods. For example, signing a credit card receipt at a retail outlet is a form of purchase agreement.

Benefits

A purchase agreement can give the seller and purchaser a sense of security with the transaction. If a dispute should arise over the purchase, both parties have a legal document to refer to the conditions of the purchase.

Considerations

Do not enter into any purchase agreement unless you have the capability to honor the terms of the agreement. This will help you avoid what may be an expensive legal dispute if the terms of the agreement are not honored.

Source:

Sample Purchase Agreement: Small Business

Standard Terms

Sales And Purchase Agreement (SPA)