Regardless of which document you require to fulfill your needs, there are four essential details you will want to address in your paperwork.
1. Description
An accurate description of the item for sale or rent makes a contract between the buyer and seller more valuable. In the event there's ever a dispute related to the product, the description provides some clarity. Try to include details that make it unique or distinguishable from similar items. For instance, there are many blue trucks on the roads. Providing the make, model, and VIN clarifies which blue truck is transferring from the seller to the buyer. On the other hand, if someone is buying an animal, the contract should specify more than just the type of animal. Include the breed, sex, age, and any unique markings as well.
2. Contingencies
Contingencies are conditions that the parties need to meet before officially completing a transaction. There may be unknown information at the time negotiations are held between the buyer and seller, and the completion of the agreement can depend on what that information reveals. For example, the sale of a catering van or motorhome might be contingent on it passing an inspection. The deal is complete if it passes. If it fails, the agreement either falls through, or the parties continue to negotiate based on the new information.
3. Price
More often than not, private sales are pretty straightforward. You'll want to break down all the financial terms related to the transaction. You'll likely only need to include the item's price and when the seller will receive payment. However, commercial transactions might include additional details, such as how much the deposit is or a payment schedule if the buyer is paying in installments.
4. Key dates
It's important to specify any key dates in your agreement. This includes basic dates like when payment is due and possession changes hands, but it can also have dates for certain contingencies.