If you have a product to sell, such as a car or a watercraft, you will need a bill of sale to show the transaction took place. Many people wonder if a bill of sale is a binding contract. In most states, a bill of sale can be utilized as a contract based on certain circumstances. In some cases, you will need law firm services to help you enforce a bill of sale. The following are some things you should know about a bill of sale:
What Is a Bill of Sale?
A bill of sale is a document that is used when you buy an item from another person. It essentially transfers the ownership of the item to you. This is considered a legal document that creates a record of the agreement to buy and sell goods.
A bill of sale is an easy document that simply lists the price of purchase and some details on the item sold. You do not include the terms of the sale, warranties, terms of payment, and a date of closing. The document acts as a receipt for the purchase.
When Should a Bill of Sale Be Used?
Most all states require that you have a bill of sale to show proof that you bought or sold something of a certain value. If you are only selling used clothing or toys with no major value attached, you do not necessarily need a bill of sale. When you sell a head of livestock or a used car, a bill of sale is necessary.
How Do You Enforce a Bill of Sale?
Sometimes, a sale will not go as planned and you have to either recoup or refund a sale. When you use a bill of sale as the only document for the sale of an item, you need to be as thorough as possible to help enforce the issues behind a transaction. Because a bill of sale is such a simple document, you will find difficulty if you have to enforce it without an attorney.
Some states have certain requirements to make a bill of sale enforceable. If you are using the document to buy a vehicle or a boat, you need an odometer reading for some states in order to go through the registration process. Due to the dollar value of these items, you may have to take the buyer or seller to court to enforce the bill of sale.
Before you make your sale, be sure to run your bill of sale by your attorney first. He or she will make sure you include the necessary information to make the sale enforceable should something go wrong.Share