Author : Gabrielle Glassop.
Published : Sat, Sep 8 2018 :3 AM.
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A Bill of Sale acts as a receipt for both parties. The seller can use it to prove that an item was sold to the purchaser "as-is", and the buyer can use it to prove that payment in full was given to the seller. It also provides a sale date to both parties, which can show when the responsibility of the item was transferred. Both the purchaser and the seller can use a Bill of Sale as evidence of the price paid for tax purposes.
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A Bill of Sale should only be used for "as-is" purchases when payment in full will be made once the item is exchanged, and both parties accept to buy and sell the item in its current condition. It expressly disclaims any warranties that relate to the quality or fitness of the product. If you are looking for a contract that includes more specific terms, provides warranties or you wish to have full payment made after the item is provided
It is not recommended that you use a Bill of Sale in instances where there is not a transfer of ownership since a Bill of Sale is best used for the sale and purchase of physical goods. When providing or hiring services, it is more appropriate to use a document like a Service Agreement or an Independent Contractor Agreement. It should also be noted that you ca not use a Bill of Sale to transfer the ownership of or the title to a piece of real estate. In such instances, you will likely need a Quitclaim Deed or a similar document.
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A bill of sale is comparable to a receipt, whereas a sales agreement acts as a contract. Since a bill of sale may contain as-is or warranty information, it’s important to read the document closely and make sure all the terms are understood and accurate. Especially for high-price items or more complicated agreements, a seller or buyer may want to have a third party, such as an attorney, check the bill of sale to ensure critical information isn’t missing.
As-is is an important term in a Bill of Sale form. It means that the item was bought and sold in its current condition and that the buyer is accepting the item with all of its faults, whether they are apparent or not. "As-is" protects the seller from having to refund the buyer for any item-related issues after it was received and paid for.