Create a Purchase Agreement for Any Transaction
Use our free template to clearly outline the terms of your sale—protecting both buyer and seller.
Whether you're buying a used car, selling equipment, or finalizing a business deal, a purchase agreement puts the details in writing so both parties know what to expect. It sets the price, payment terms, delivery date, and what happens if something goes wrong.
Download our easy-to-use template and follow the guide below to create your own purchase agreement today.
Create your purchase Agreement
Download, Print and E-sign your Purchase Agreement Template
Table of Contents
What is a Purchase Agreement?
A purchase agreement is a legal document that outlines the terms of a sale between a buyer and a seller. It describes what’s being sold, how much it costs, how and when payment will be made, and what happens if either party doesn't hold up their end of the deal.
These agreements can be used for one-time sales of goods (like vehicles, furniture, or equipment), or services (such as freelance work or consulting). In larger or more formal transactions—such as selling a business or property—a purchase agreement is often required to protect both parties.
When is a Purchase Agreement Needed?
Even for relatively small purchases, a written agreement helps prevent misunderstandings. It’s especially important if the item is valuable or payment is being made in installments.
What Happens If You Don’t Use One?
The buyer may back out or claim they misunderstood the terms
The seller could fail to deliver what was promised—or deliver something different
Disputes are harder to resolve, especially if money has already changed hands
There’s no legal proof of the original agreement if one party wants to go to court
How to Fill Out a Purchase Agreement
A simple purchase agreement needs just a few clear sections:
- Step 1: Buyer and Seller Information
Full names and contact details of both parties.
- Step 2: Description of Goods or Services
What is being sold? Include make, model, serial number, or scope of work if relevant.
- Step 3: Purchase Price and Payment Terms
Include the full price, down payment (if any), and payment schedule (lump sum, installments, etc.).
- Step 4: Delivery or Completion Date
When will the item be delivered or the work be completed?
- Step 5: Warranties or “As-Is” Language
Will the item be sold with any guarantees? Or is it sold “as-is,” with no responsibility for defects?
- Step 6: Signatures of Both Parties
A signature from each side confirms agreement and makes the contract legally binding.
Our downloadable template includes each of these sections and lets you edit them based on your situation.
Common Mistakes to Avoid
- Vague Item Descriptions
Write exactly what’s being sold. “Used laptop” is too vague—include the brand, model, and condition if possible.
- Forgetting Payment Details
Be clear about how payment will be made and whether it’s upfront or over time.
- No Delivery Timeline
Without a delivery or completion date, either party could delay indefinitely without consequence.
- No Agreement on Condition
If an item is being sold “as-is,” that should be stated in the agreement to avoid future liability.
- Missing Signatures
An unsigned purchase agreement may not hold up legally—make sure both parties sign and keep a copy.
Related Documents
Depending on your transaction, you might also want to use:
- Bill of Sale
Confirms that the sale has been completed and transfers ownership
- Service Agreement
For ongoing or recurring services instead of a one-time transaction
- Non-Disclosure Agreement (NDA)
If sensitive information is being shared before or during the transaction
- Installment Payment Agreement
If the buyer is paying over time
- Independent Contractor Agreement
If services are being exchanged as part of the sale
Each of these documents helps clarify specific responsibilities and protects your legal rights.
Frequently Asked Questions (FAQs)
Is a purchase agreement legally binding?
Yes—once both parties sign, a purchase agreement becomes a legally enforceable contract.
Can I use this for a personal sale, like selling my car?
Absolutely. A purchase agreement is commonly used for private sales of vehicles, electronics, and other property.
What’s the difference between a purchase agreement and a bill of sale?
A purchase agreement outlines the terms of the deal before it happens. A bill of sale confirms the transfer has already taken place. Many people use both: one before the transaction, and one afterward.
Do I need a lawyer to write a purchase agreement?
Not usually. For most simple purchases, a template is sufficient. However, if the transaction is high-value or legally complex, you may want to consult a legal professional.
Can I make changes to the template?
Yes. Our template is fully customizable. You can add, remove, or edit sections to fit your specific situation.
What happens if someone breaks the agreement?
If one party fails to follow through—like not delivering the item or failing to pay—the other party can take legal action. A signed purchase agreement gives you written proof to support your case in court.
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