This contract is an essential part of a purchasing procedure. It ensures that the buyer receives all the products or services he wants. And the seller gets his money on time. Companies as well as individuals, purchase a lot of products and goods on regular basis. They need to keep a record of every purchase as it will be useful to claim the delivery or warranty afterwards.
Buyers as well as sellers, use this document in the court as evidence to sue the other party if they violate any agreement conditions or regulations. Although it depends upon the local law and government, but this contract is the most important and official document in the purchase process.
Here is preview of this Free Purchase Contract Template in MS Word format.
[Please find download link at the bottom of this article]
Essential elements to include in a Purchase Contract:
This provides the correct price of the products or services that are going to be delivered along with the special discounts, concessions, shipping charges and additional charges (if any).
This provides the information about the timeframe in which the buyer is required to pay off the money in full. If he is allowed to make monthly installments or if the seller asked him to pay once and in full, all those conditions are stated here.
This states that the product is free of faults and the vendor has checked each and every item and if the consumer finds any fault or something breaks down, the vendor is bound to repair or replace the product if it’s in the warranty period provided by the vendor.
This explains what are the conditions or circumstances that terminate the warranty. For example the seller is only bound to replace or repair the product if it’s a manufacturer fault and not because the consumer used in outside in rain and water damaged the equipment.
Limited liability clause:
this explains the amount the seller has to pay if the product has some faults or the customer is not satisfied with the results. Not all the vendors state this section in the purchase contract and just think to handle the situation when it will happen.
How to prepare a Purchase Contract:
- Start the contract by putting the names and contact addresses of both buyer and seller at the top of the contract.
- After that you are required to provide a small but brief description of the product(s) that are going to be delivered.
- Here the selling price of each product is described upon which both the buyer and seller are agreed. If the buyer gets special discounts, it’s also discussed here. It’s up to the situation if the buyer will pay for the delivery charges or if the vendor will.
- Here the vendor enlists the type of warranty he will provide with the products i.e. its standard warranty, special warranty or quitclaim warranty.
- Include the amount that the buyer has already paid to the vendor prior to the delivery just to make sure that he is going to receive all the products or goods. Usually it’s about the 10% to 15% of the gross amount of the entire contract.
- The buyer is needed to provide a timeframe in which the vendor is required to deliver all the products and if it expires, the contract will be terminated.
- Depending upon the situation and circumstances, if the buyer or seller wants to add anything additional, they have all the rights to do that and the other party should consider reviewing them.
- At the end both buyer and seller are required to sign and put their thumb impressions to make the contract official and authenticated.