Drafting a Bill of Sale
- Saptaparni Raha
- Dec 20, 2022
- 2 min read
Written by Saptaparni Raha, Lawyer
Rajesh went to his friend's shop to purchase a bike. After the payment, his friend asked him to provide certain details like address, contact number, etc. His friend filled up the bill using all details to keep it as evidence that all considerations had been paid.
Introduction:
A Bill of Sale is a legal document that represents a private sale between two parties. It is a sales receipt for the exchange of goods for compensation.
Why is the Bill of Sale Important?
A bill of sale is a very important document as it is considered proof of purchase or sale. This document is required during the time of transferring title with your state's department of motor vehicles or when you are buying and selling branded livestock or any other intangible asset. It is a piece of evidence that shows that the actual right to ownership has been transferred.
How Do You Make a Difference Between the Bill of Sale and the Invoice?
A bill of sale records all the information regarding the exchange of goods. On the other hand, the invoice is provided by the seller to the buyer to outline how much money they owe.
What Should Be the Important Clauses to Draft a Bill of Sale?
First, you need to provide all the information relating to both parties, such as the name and address of the seller and purchaser.
After that, all details regarding the property need to be mentioned like location, manufacturing year, model, etc.
Then you need to mention the price of the property and the mode of payment for the property.
Any loans or liens taken by the purchaser against the property or the product should also be included.
Additional clauses as per convenience should also be added.
Both parties need to sign the document with a date.
Conclusion:
A Bill of Sale is a legal document drafted by the seller which includes the mode, particulars of the transaction, and consideration that protects both parties to the transaction in case any disagreement arises.
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