A bill of sale is a writing that documents the transfer of title of property from the seller to the buyer. A bill of sale legally documents a transaction made by a person or entity who sells something to someone or some entity. This document identifies the terms of the sale to include the specific date of the sale, where the goods reside, and the amount of money or value of property to be exchanged from the person purchasing the goods to the seller. Sometimes the instrument warrants that the seller has legal possession of the goods it is selling.
Typically, a bill of sale will contain the seller’s name and address, the purchaser’s name and address, type of goods that are being sold (e.g. vehicle, furniture, etc.), the current location of the property to be sold, the price that the parties agreed to, the specifics of the property, and a place for each party to the agreement to sign. Of course, other clauses can be added to this agreement to further protect the parties, but the above-listed provisions are a great start.
Most commonly, a bill of sale is used in the sale of a motor vehicle and, usually, you can obtain a form bill of sale from your department of motor vehicles. However,these documents are also used on the sale or purchase of many other items, to include, computers, televisions, stereos, tools, boats, airplanes, furniture, animals, and many other forms of property. Accordingly, a bill of sale is not a document commonly used in most businesses however it is available as a legal means of documenting the terms and conditions of a specific transaction.
To determine if you should be using this type of document in your business, the best thing to do is contact an attorney to discuss the benefits, if any, to your business. Is this something you should think about using in your business?
If you are needing help with your business contracts, contact us to schedule your comprehensive Business Building Benchmark today so we can identify the best course of action for you.