Information About Purchase Agreements

By | February 13, 2012

Imagine this scenario: your start-up company has made a big sale and you hold a small party to celebrate. Suddenly, the business you made the sale to backs off of their purchase and cites the lack of a purchase agreement as a way to get out of the deal. Maybe, they simply find a way to get out of a weak purchase agreement. Needless to say, this scenario can be a major bummer, and something no start-up should have to go through.

So what are you going to do in the future? You’re going to have purchase agreements in place, of course. But purchase agreements have two parties involved, and this means that you’ll often find yourself on either side of purchase agreements in your life.

Why is it so important that you have these contracts in place? Because purchase agreements are more than a wink and a handshake; they’re a real legal commitment to making a purchase or for providing the purchased materials to someone else. They’re the legal backing that your company uses to ensure that it gets paid for what it sells; in other words, it’s the legal foundation for the lifeblood of many a business.

That’s why it’s so important that you have purchase agreements in place that are both thorough and clearly-written. They should outline not only the products to be purchased but the payment terms, as well as the terms and conditions of the agreement so that there is an “out” should the products come out not as expected. Both parties should look to protect themselves: that means both the buyers and the sellers.

Ideally, purchase agreement documents will facilitate a win-win situation for both companies. Good products being purchased at a reasonable price helps ensure low overhead for one company while the other company is glad to have the business. The lack of a purchase agreement should never get in the way of this kind of relationship, especially when the orders are tall.

To download purchase agreements, CLICK HERE.