Difference Between a Sales Contract and a Bill of Sale [ Functions, Importance, Included ]

 

During important transactions, people are required to write a bill of sale and a sales contract. After a transaction has been finalized, a bill of sale is issued to the buyer from the seller. A bill of sale form ensures that the title of the property being sold is transferred to the buyer.

When a seller forms a sales contract with the buyer, it is done before the transaction can take place. Basically it sets the terms of how the transaction will go between both parties.  This is the reason why people need bill of sale forms and sales contract forms to ensure that both are properly documented.

What Are the Functions of a Bill of Sale and Sales Contract?

With a sales contract, its purpose is to make sure that both the buyer and the seller form an agreement regarding how the exchange will take place. It discusses the details’ terms and conditions of the transaction, such as the payment method, the date of transfer, warranties and more. A bill of sale’s purpose is to finalize the transfer by handing over all of the ownership rights to the buyer.

So if one were to be issued Equipment Bill of Sale Forms, then all equipment listed are now legally transferred to the name of the recipient. To know more about the different functions of a bill of sale and sales contract, then there are sample bill of sales and sales contract forms available here.

What Is the Importance of a Bill of Sale and Sales Contract?

The importance of both is that they are physical proof that the agreements regarding the transaction and the entire transaction itself  has been finalized. If one were to receive Business Bill of Sale Forms after purchasing a particular establishment, then the bill of sale can be used in the event that one questions the ownership of whoever sold the business and who received the title of owner.

To know more about bill of sales form and sales contract, then you may view our sales contract and bill of sale form in PDF to gain the information you need.

What do You Need to Include in a Bill of Sale?

When using any Free Bill of Sale Forms, you must learn to include the following:

• Complete name of the buyer and the seller
• Date of the bill of sale
• Contact details and address of the buyer and seller
• Properties that are being exchanged
• Total amount of payment made by the buyer
• Statement involving the transfer of ownership and responsibilities

There are also other bill of sale form examples that can provide you with other information in regards to filling out bill of sales.

What Should be Included in a Sales Contract?

Before a transaction can be made, one must know how to create a sales contract. So be sure to place the following information when making one:

• Statement showing that the contract was made between the name of both the buyer and the seller
• Date of when the contract was made
• Statement regarding that the property to be sold will not violate any land law and regulations upon usage.
• Statement of regarding the agreements made and the location where the contract was made
• Amount of the purchase price of the buyer
• Remainder of the purchase price payable

To help you create either a bill of sale or sales contract, then there are templates that you may use any of the simple bill of sale forms in the event that you have finalized a particular transaction.