What is a simple purchase agreement?


Quick Answer

A simple purchase agreement is a contract between two or more parties for the exchange of goods or services. Simple purchase agreements are usually made for real estate or other purchases where legal documentation is a prudent choice, but also find use in smaller exchanges.

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What is a simple purchase agreement?
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Full Answer

A simple purchase agreement includes details such as the price for the relevant goods and services, estimated date of delivery, and the conditions that come into effect should a party fail to deliver goods and services on time. An attorney usually consults with the drafters of these types of agreements, in order to ensure that the agreement includes all pertinent information and meets all legal requirements.

An example of a simple purchase agreement is as follows: A buyer wishes to purchase a custom mountain bike from a seller. The seller determines the price as well as the terms of purchase. The document would include conditions such as penalties should the bike be delivered in poor condition, or if the buyer was unable to meet payments for the bike over a set period of time. Once filed and copied by both parties, the document is legally binding and controls when disputes arise during the purchasing process.

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