A bill of sale is a legal document that transfers ownership of goods from seller to buyer. A bill of sale is not always necessary if the transaction is between two individuals who know each other well. However, if the buyer does not know the seller, then a bill of sale is required. In some states, a bill of sale is not even necessary if both parties agree to the terms of the contract.
The phrase “bill of sale” originally referred to any writing that effectuated or proved an absolute personal property disposition for value. Prior to developments in digital record keeping systems and contract law, bills of sale were vulnerable to deceit and fraud because they are theoretically independent of any laws under U.S. common law. You can get a bill of sale template at a free legal forms website.
Purpose of a Bill of Sale
The purpose of a bill of sale is to protect the buyer from any claims made by the seller after the sale. If the seller fails to deliver the product, the buyer may have grounds to sue the seller. Therefore, a bill of sale ensures that the buyer receives what they paid for.
Depending on the nature of the transaction, a bill of sale can be either very complex or very simple. As it lists the exact items that have been sold and the precise price that was agreed upon and paid for each, a typical retail purchase receipt can be regarded as a bill of sale. As an illustration, when a futures contract expires, the holder is typically given a delivery instrument that serves as a bill of sale because it may be exchanged for the asset underlying.
It is crucial to ensure the bill of sale is properly completed and obtained when conducting sales involving expensive assets, like cars.
What are the Types of Bills of Sale?
A bill of sale typically looks something like this:
- Absolute bills of sale, which are essentially nothing more than simple contracts for the sale of items covered by the sale of goods law and the common law of contract, do not constitute any kind of security but are merely documents attesting to assignments, transfers, and other assurances of personal property.
- Any transfer of personal property or assignment to a person as security for the payment of money is represented by a conditional bill of sale. By granting the grantee of the conditional bill of sale a personal right of seizure and the right to a possessory security interest, the conditional bill of sale creates a security in the grantee’s favor.
Nowadays, a bill of sale is a frequently used written document that demonstrates the voluntary transfer of a right, interest, or title to personal property from one person to another, either as a security or absolutely, without the physical transfer of the property from the owner to the other party. You can find an Arkansas bill of sale online where these types of forms and templates are available easily.