A purchase contract is a legal document which is signed between two parties when one of them known as Purchaser purchases some asset from another party known as the Seller. The purchase contract can be made for various different types of assets like property, equipments, hardware or others. These types of contracts helps to know the details of the parties and various terms and conditions agreed between them. If the amount of purchase is paid in instalment then the details of the same should also mentioned in the contract. While drafting a purchase contract, following factors should be considered
Points to be considered while preparing a purchase contract:
- The complete details of the property or any other asset which is being purchased should be mentioned in the contract.
- The property or product should be categorised into specific details so that in case of discrepancy, the purchase contract can provide the exact information on the type of property or product taken for purchase.
- The full name, details and address of the parties involved should be mentioned in the contract.
- The amount and terms of purchase should also be made part of the purchase contract. This is because the party selling the property can make alterations in the original amount or agreed terms.
- If there are any witnesses in the event of negotiating and signing the purchase contract then their details should also be a part of the agreement.
- If there are any special words used, then their definition should be clearly and precisely defined so that there is no space left for misusing the usage of the terms specified in the purchase contract.
- The effective date of possession and if payment is made in parts, then its detailing of the same should be a part of the purchase contract.