A purchase agreement is a legal document that outlines the different terms and conditions related to the sale of virtually anything. The purchase agreement can relate to the sale of real property, personal property, a business, or virtually any other type of item. The agreement is a legal contract that creates an obligation on both the buyer and seller—buyer is obligated to buy, and seller is obligated to sell. If the contract is properly drafted and is for something legal the agreement will be enforceable. Failure to properly draft the contract can cause enforceability issues. Purchase agreements are use in a variety of businesses and for varieties of reasons.
While not all contracts need to be in writing, some are required by the statute of frauds to be in written form to be enforceable. The drafter needs to be careful to make sure the agreement truly covers the expectations of the client. Well-written purchase agreements should include all the information relevant to the transaction, and should be clearly-written so as to avoid any misunderstandings regarding the various terms.
Craig M. Dorne, PA works with clients daily in the preparation of all types of contracts and provides an initial free consultation.