A bill of sales form is basically a lawful document used when an individual transfers or sells the ownership of items or goods like a photocopier, equipment, boat, furniture, computers, car and other valuable assets to another individual. The individual who buys the ownership or the transfer is called the purchaser while the seller is called the vendor. Bill of sales can also be used for buying and selling intellectual property like a website or customer list.
The Contents of a Bill of Sales Form
A typical Bill of Sales Form is provided to the purchaser by the seller and it describes a number of points depending on the situation. The bill of sales will consist of the names of the purchaser and the vendor; a complete list of products sold and purchased; the mode of payment used and the price of the products sold or purchased and a number of other legal terms according to the complication involved in the transaction.
The Importance of Bill of Sales
If you are purchasing a particular business and as an important part of this purchase, you are buying all the other equipment like chairs, furniture, office supplies and inventory, it is necessary for you to request for a bill of sales agreement from the seller. Getting the bill of sales from the seller is important because this helps in preventing the seller from claiming the ownership of the assets listed on the bill of sales document anytime in future. Thus, it can rightly be said that a bill of sales works in the form of a written record or receipt of a particular purchase and its payment. It is very similar to a sales receipt that people receive from cash counters when they buy products at a convenience or a retail store. However, there is a slight difference between a sales receipt and a bill of sales. The bill of sales might also contain other legal terms in regards to the sale and the purchase which is not found in the sales receipt.
Other Provisions Included in the Bill of Sales
There are other provisions as well that can be listed in a bill of sales form and they include the terms explaining the condition of sold equipment. Warranty provisions proving the legal ownership of the seller and the working condition of the products being sold can also be included in the bill of sales. In the event, when some other individual claims the legal ownership of the product mentioned in the bill of sales, the warranty provisions of the document would offer the buyer certain legal rights to claim against the seller. In the event that the products mentioned on the bill of sales get damaged or do not work as claimed, the warranty provisions might also offer certain legal rights to the purchaser. It is very important to keep in mind that getting a bill of sales from the vendor or the seller does not come as a guarantee that the vendor possesses the legal ownership of the products mentioned in the bill of sales. Speaking technically, an individual does not have the right of selling anything that he or she might not own.