Step-by-Step Guide to Writing a Purchase Contract

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Creating a legally binding purchase contract is an essential element in any real estate transaction. After all, it serves to protect both parties involved, clarify the terms of the sale and can even be used for negotiating the agreement. The Genie AI team understands how important it is to get a purchase contract right, so we have compiled this step-by-step guide to help buyers and sellers alike better understand what is expected of them.

A purchase contract should include every detail of the agreement between buyer and seller, from the price of purchase and payment terms, to any contingencies or closing dates specified. It’s important that it’s as explicit as possible so there’s no risk for confusion or misinterpretation - after all, these documents are legally binding! Moreover, including all relevant information in a purchase contract can help prevent misunderstandings arising during or after completion.

Finally, a purchase contract can be invaluable when it comes to negotiations on both sides. Having an objective document showing precisely what each party has agreed ensures everyone is on the same page when it comes time to close on a deal.

At Genie AI we are proud believers in helping people access high quality legal documents without having to pay expensive lawyer fees - that’s why we have created our community template library which millions of datapoints across teach our powerful AI system what constitutes market-standard contracts! If you’re looking for more detailed guidance on how to draft a valid and enforceable real estate transaction document then please read on below for further information – let us help you create strong agreements that keep your interests secure!

Definitions

Jurisdiction: The geographical area or authority under which a legal system operates.
Contract Law: A set of rules that governs the formation and enforcement of legally binding agreements between parties.
Consumer Protection Laws: Laws that regulate the sale and provision of goods and services to protect the interests of consumers.
Witness: A person who is present at an event or transaction and can testify to what happened.
Mediation: A process in which an impartial third-party mediator helps two or more parties resolve a dispute.
Arbitration: A process of resolving a dispute by having an impartial third-party arbitrator make a binding decision.
Remedies: Measures that are taken to enforce a legal right or remedy a wrong.
Lawsuit: A legal action brought by one party against another in a court of law.

Contents

1. Overview of the legal requirements for a valid purchase contract
2. What laws apply to the transaction
3. What documents need to be included in the purchase contract
4. What the parties are agreeing to in the contract
5. Drafting the purchase contract
6. Identifying the parties involved in the agreement
7. Drafting the clauses that outline the terms of the purchase contract
8. Ensuring that the contract is drafted in accordance with applicable legal requirements
9. Negotiating the terms of the purchase contract
10. Identifying the points of contention between the parties
11. Discussing the terms of the purchase contract to reach an agreement
12. Identifying and addressing potential issues that could arise in the negotiation process
13. Executing the purchase contract
14. Finalizing any changes to the purchase contract
15. Signing and executing the purchase contract
16. Ensuring that all parties are in agreement with the terms of the purchase contract
17. Filing the purchase contract
18. Determining where the purchase contract must be filed
19. Submitting the purchase contract for filing with the relevant authorities
20. Obtaining confirmation that the purchase contract is legally binding
21. Monitoring the purchase contract
22. Reviewing the purchase contract regularly to ensure that it remains up to date and valid
23. Identifying any changes that need to be made to the purchase contract
24. Making any necessary changes to the purchase contract
25. Dispute resolution
26. Identifying potential disputes that could arise between the parties
27. Establishing a dispute resolution process in the purchase contract
28. Resolving any disputes that do arise in accordance with the terms of the purchase contract
29. Termination and renewal of the purchase contract
30. Establishing a process for terminating the purchase contract
31. Establishing a process for renewing the purchase contract
32. Ensuring that the terms of the purchase contract remain in effect until the contract is terminated or renewed
33. Amendments to the purchase contract
34. Identifying any changes that need to be made to the purchase contract
35. Drafting amendments to the purchase contract to reflect the changes
36. Executing the amendments to the purchase contract
37. Enforcement of the purchase contract
38. Understanding the enforcement options available for the purchase contract
39. Taking appropriate action to enforce the purchase contract if required
40. Seeking legal advice if necessary

Get started

Overview of the legal requirements for a valid purchase contract

• Understand the applicable legal requirements for a valid purchase contract in your jurisdiction.
• Research what types of agreements are usually included in a purchase contract in your jurisdiction.
• Learn about any special provisions, clauses, or language that may be required in your jurisdiction.
• Understand the implications of different types of contracts, such as purchase agreements, sale agreements, and option agreements.
• Understand any local, state, and federal laws that may apply to the transaction.

When you can check this off your list:

• When you have a full understanding of the applicable legal requirements for a valid purchase contract in your jurisdiction.

What laws apply to the transaction

• Research laws and regulations applicable to the transaction, such as those related to real estate, taxes, and other relevant matters.
• Consult a lawyer if there is any doubt or uncertainty when it comes to the legal requirements for the purchase contract.
• Once you have identified the appropriate laws and regulations, you can proceed to the next step.

What documents need to be included in the purchase contract

• The purchase contract should include the following documents:
• Sales agreement
• Title report
• Financial statement
• Mortgage documents
• Home inspection report
• Appraisal report
• Tax documents
• Insurance documents
• Review all documents to ensure that they are complete and accurate.
• Check for any discrepancies or errors in the documents.
• Once all documents have been reviewed and verified, you can move on to the next step.

What the parties are agreeing to in the contract

• Identify the parties to the contract, including their names and contact information
• Describe the property that is being sold and the purchase price
• Include all contingencies the purchase is subject to, such as the buyer obtaining financing or a satisfactory home inspection
• Identify the date of closing, when all funds will be exchanged and title will be transferred
• Describe the responsibilities of the buyer and seller, including payment of taxes, assessments, and closing costs
• Include any additional terms that the parties have agreed to
• When you have identified all of the items above and have them included in the purchase contract, you can check this off your list and move on to the next step.

Drafting the purchase contract

• Determine the language needed to accurately explain the terms and conditions of the purchase agreement
• Include any special clauses or contingencies that are relevant to the agreement
• Include the date of the agreement, the names of all involved parties, and the signatures of all parties
• Proofread the contract to ensure accuracy and completeness
• When the contract is complete, all parties should sign and date the contract
• Make copies of the contract to keep on file
• Once all parties have signed the contract and all copies have been distributed, the contract is complete and ready to be enforced

Identifying the parties involved in the agreement

• Research the legal names and contact information of the parties involved in the purchase contract, including the buyer and the seller.
• Gather the contact information of any agents involved in the transaction.
• Check to make sure all parties involved are legally able to enter into a contract.
• When you have confirmed the identities of all parties involved and have their contact information, you can move on to the next step.

Drafting the clauses that outline the terms of the purchase contract

• Identify the key points of agreement between the parties, such as the purchase price, payment terms, and delivery arrangements.
• Make sure that all contingencies, such as zoning requirements, are addressed in the contract.
• Include a clause that deals with the consequences of any breach of the contract.
• Draft a clause that outlines the responsibilities of the parties when it comes to insurance and maintenance.
• Draft a clause that sets out the process for resolving any disputes that may arise.

You’ll know you’ve completed this step when you have a comprehensive list of clauses that address all the key points of agreement between the parties.

Ensuring that the contract is drafted in accordance with applicable legal requirements

• Research the applicable local, state, and federal laws and regulations that are relevant to the purchase contract.
• Ensure that all of the terms of the contract are in compliance with the applicable laws and regulations.
• Make the necessary changes to the contract, if any, to ensure that it is legally binding.
• Review the contract with a lawyer, if necessary, to ensure that it is in compliance with all applicable legal requirements.

How you’ll know when you can check this off your list and move on to the next step:

• Once you have conducted your research, made necessary changes, and/or consulted with a lawyer, you will be able to move on to negotiating the terms of the purchase contract.

Negotiating the terms of the purchase contract

• Discuss the terms of the purchase contract with the other party and negotiate any points of contention
• Ensure that all parties understand and agree to the terms of the contract
• Make sure all the pertinent details are included in the contract, such as the purchase price, closing date, and any other conditions of the sale
• Make sure any contingencies or other special conditions are clearly stated in the contract
• Finalize the purchase contract and have both parties sign it
• You can check this off your list and move on to the next step once all parties have agreed to the terms of the contract, the contract has been finalized, and both parties have signed it.

Identifying the points of contention between the parties

• Research the legal framework related to the purchase contract
• Identify the points of contention between the parties (e.g. price, payment terms, delivery date, etc.)
• List out any potential issues that should be addressed as part of the purchase contract
• Bring the list of points of contention to the negotiation table

You will know you have successfully completed this step when you have identified all of the points of contention between the parties and have a list of potential issues that should be addressed in the purchase contract.

Discussing the terms of the purchase contract to reach an agreement

• Outline the key points of the contract and the desired outcome for both parties
• Find common ground and areas of agreement
• Ask questions and request clarifications to ensure all parties understand the terms of the agreement
• Respectfully negotiate terms that are agreeable to all parties
• Document any changes or amendments to the contract
• Once the agreement is reached, the parties should sign the contract
• You can move onto the next step once the agreement is finalized and all parties have signed the contract.

Identifying and addressing potential issues that could arise in the negotiation process

• Review the proposed purchase contract to identify any possible issues or areas of concern
• Discuss any potential issues with the other party and agree on a solution or compromise
• Check the contract again to ensure that all issues have been addressed and resolved
• Make sure that all changes or compromises to the contract have been properly documented
• When all potential issues have been identified and addressed, you can move on to executing the purchase contract.

Executing the purchase contract

• Both parties sign the purchase contract and exchange any necessary documents
• Exchange any monies required to secure the purchase of the property
• Record the purchase contract in the appropriate public record or office
• Notify any necessary third parties of the purchase
• You can check this off your list when all of the documents have been signed and recorded, and all monies have been exchanged.

Finalizing any changes to the purchase contract

• Review the purchase contract with your lawyer or real estate agent to make sure all changes are satisfactory
• Ask any questions you may have about the terms of the purchase contract
• Make sure all changes are properly documented in writing
• When you are satisfied with the changes to the purchase contract, you can move on to the next step of signing and executing the contract.

Signing and executing the purchase contract

• Have the buyer and seller sign and date the contract
• Ensure that the contract is properly notarized
• Have all parties exchange copies of the signed contract
• Once all steps are complete, the purchase contract is considered legally binding
• You can check this step off your list when all parties have signed and exchanged copies of the contract

Ensuring that all parties are in agreement with the terms of the purchase contract

• Confirm that all parties have read and understand the purchase contract.
• Ensure that all parties agree to the terms of the purchase contract.
• Obtain the signature of all parties involved.
• You will know that you can check this step off your list when all parties have signed the contract and are in agreement with the terms.

Filing the purchase contract

• Contact the local county office or register of deeds to determine where to file the purchase contract
• Ensure that the purchase contract is properly notarized before filing
• Submit the purchase contract to the local county office or register of deeds
• Pay all applicable filing fees
• Receive a filing receipt, which should be kept for record-keeping purposes

Once the purchase contract has been successfully filed, you can check this off your list and move on to the next step.

Determining where the purchase contract must be filed

• Research the relevant laws for the jurisdiction where the property is located to find out where the purchase contract needs to be filed
• Consult with a qualified attorney in the jurisdiction to gain further insight into the filing requirements
• Gather all the information required to be included in the purchase contract such as the purchase price, the names of the parties, and description of the property
• Once you have identified the applicable filing requirements and gathered all the necessary information, you can check off this step and move onto submitting the purchase contract for filing with the relevant authorities.

Submitting the purchase contract for filing with the relevant authorities

• Collect all necessary documents and create one package for submission
• Check with the relevant authority to determine where the documents should be submitted (e.g. county recorder, courthouse, etc.)
• Submit the package of documents to the appropriate authority
• Pay any applicable filing fees
• Receive confirmation that the purchase contract has been accepted and filed
• Make copies of the confirmation for your records
• When you receive confirmation of the filing, you can check this off your list and move on to the next step.

Obtaining confirmation that the purchase contract is legally binding

• Contact the relevant authorities and request confirmation that the purchase contract is legally binding
• If you’re working with a real estate agent, ask them to contact the relevant authorities on your behalf
• Once the relevant authorities have confirmed that the purchase contract is legally binding, you can move on to the next step
• Obtaining confirmation that the purchase contract is legally binding can take anywhere from a few days to a few weeks, depending on the laws in your jurisdiction

Monitoring the purchase contract

• Set up reminders with your attorney to review the purchase contract at least once a year, or whenever there is a change in the purchase agreement.
• Check the purchase contract for any updates or changes in the language, as well as any changes in the laws that may affect the purchase agreement.
• Make sure that any changes to the purchase contract are signed off on by both parties.
• When you are sure that the purchase contract is up to date and valid, you can move on to the next step.

Reviewing the purchase contract regularly to ensure that it remains up to date and valid

• Review the purchase contract at least once a year to ensure the information is still accurate and valid
• Check for changes in the law that may affect the contract
• Make sure all parties are up to date on their obligations
• Ensure that all signatures are still valid
• When you have reviewed the contract and ensured that it is still up to date and valid, you can move on to the next step of identifying any changes that need to be made to the purchase contract.

Identifying any changes that need to be made to the purchase contract

• Read through the purchase contract and identify any areas that need to be changed or updated
• Compare the purchase contract to the most recent version of the agreement to ensure that it is up to date
• Note any areas that need to be amended or revised
• Consult with relevant parties to discuss any changes needed
• Make a list of the changes needed and any additional clauses that should be added
• Once the changes have been identified and discussed, you can move on to making the necessary changes to the purchase contract.

Making any necessary changes to the purchase contract

• Review any changes made to the purchase contract and make sure they are correct
• Make sure any changes are signed and dated by both parties
• Ensure that the contract is clear and concise, and that all parties understand the changes
• Make sure any changes are consistent with the terms of the original purchase contract
• Make sure all changes are legally binding
• Once all changes have been made, the purchase contract should be ready to be signed by both parties
• You will know you have completed this step when all necessary changes have been made and the purchase contract is ready to be signed by both parties.

Dispute resolution

• Consider the most effective methods of dispute resolution based on the type of contract being written, i.e. arbitration, mediation or litigation
• Draft language in the contract that outlines the parties’ agreement on dispute resolution
• Ensure that the dispute resolution language is clear and unambiguous
• Consider if any states or local governments have laws that might affect the dispute resolution process
• Make sure that all parties agree to the dispute resolution methods outlined in the contract
• Check that all details have been included and all parties have signed the contract

Once all of the above steps have been completed, you can move on to the next step of identifying potential disputes that could arise between the parties.

Identifying potential disputes that could arise between the parties

• Research the legal environment surrounding the purchase, including any relevant laws, regulations, or industry standards that could affect the agreement
• Identify any areas in the purchase that may be open to interpretation or may lead to misunderstandings between the parties
• Consult with a legal professional or other knowledgeable party to get an expert opinion on potential disputes that could arise
• Consider how the purchase agreement should be structured to protect against potential disputes and provide a framework for dispute resolution
• Draft provisions in the purchase agreement to address potential disputes
• When you have identified and addressed all potential disputes, you can move on to establishing a dispute resolution process in the purchase contract.

Establishing a dispute resolution process in the purchase contract

• Decide on the dispute resolution process that will be outlined in the purchase contract (e.g. arbitration, mediation, litigation, etc.)
• Outline the process in the purchase contract, including the timeline for each step
• Identify the parties that will be involved in the process (e.g. mediators, arbitrators, etc.)
• Specify the cost, time and location of the dispute resolution process
• Agree on the rules and procedures that will be used to resolve the dispute
• Include the clause in the purchase contract that outlines the dispute resolution process
• When finished, you will have a purchase contract with a dispute resolution process outlined in it.

Resolving any disputes that do arise in accordance with the terms of the purchase contract

• Identify the terms of the purchase contract that are in dispute.
• Research applicable laws to determine which party is in the right.
• Mediate a resolution between both parties that is agreeable to all involved.
• Draft a new agreement that reflects the resolution.
• Have both parties sign the agreement.

When you’ve identified and agreed upon a resolution to any dispute in accordance with the terms of the purchase contract, you can move on to the next step of Termination and Renewal of the Purchase Contract.

Termination and renewal of the purchase contract

• Outline the rules for terminating the purchase contract, including any notice requirements
• Specify the circumstances in which the purchase contract may be terminated
• Establish any renewal terms, including automatic renewal and how to opt out
• Agree on how to handle any remaining payments or obligations that may exist when the purchase contract terminates
• Set expiration date for the purchase contract
• Make sure all parties understand the termination and renewal rules of the purchase contract

Once you have outlined the termination and renewal conditions of the purchase contract, you can check this off your list and move onto the next step.

Establishing a process for terminating the purchase contract

• Define the conditions under which the contract may be terminated
• Establish a process for how the parties will communicate the termination (such as via a letter or email)
• Determine if the termination is immediate or if it takes effect after a certain period
• Include a clause outlining the responsibilities of the parties in the event of a termination
• Specify any penalties or damages that may be incurred in the event of a termination
• Have both parties sign and date the contract to acknowledge the termination process
• Once the contract has been signed and dated, you can check this off your list and move on to the next step.

Establishing a process for renewing the purchase contract

• Agree on the length of the renewal period and the terms of the renewal
• Decide how the renewal period will be initiated and how notice will be provided
• Include a provision for the purchase contract to be automatically renewed unless either party provides written notice of termination
• Specify the date by which a notice of termination needs to be given
• Outline the process for renegotiating the terms of the contract if it is renewed
• Ensure that the renewed contract is signed and dated by both parties

Once all of the above provisions have been included and agreed upon, the process of establishing a process for renewing the purchase contract is complete and you can move on to the next step.

Ensuring that the terms of the purchase contract remain in effect until the contract is terminated or renewed

• Review the agreement to ensure that all of the terms are in effect until the contract is terminated or renewed
• Research applicable laws in your jurisdiction to ensure that the agreement remains valid until it is terminated or renewed
• Determine if any additional provisions need to be included in the agreement to ensure that the terms remain in effect until the contract is terminated or renewed
• Draft an amendment to the agreement to include any additional provisions that are needed
• Have both parties sign the amendment
• File the amendment with the appropriate state agency, if required
• Once the amendment is signed and filed, if necessary, you can check this step off your list and move on to the next step.

Amendments to the purchase contract

• Familiarize yourself with the existing agreement and identify any changes that need to be made
• Discuss any changes with the other party and come to an agreement on the changes
• Create an amendment document that outlines any changes to the existing contract
• Have both parties sign the amendment document and attach it to the existing agreement
• When the amendment document is signed and attached to the existing agreement, this step is complete and you can move on to the next step.

Identifying any changes that need to be made to the purchase contract

• Review the purchase contract carefully to identify any changes that need to be made
• Have each party involved in the purchase contract review the document to ensure that all changes are identified and agreed upon
• Make a list of all changes that need to be made
• Check with a lawyer or other legal professional to ensure that all changes are legally sound
• Once all changes are identified and agreed upon, you can move onto the next step: drafting amendments to the purchase contract to reflect the changes.

Drafting amendments to the purchase contract to reflect the changes

• Consult with your attorney to draft any amendments to the purchase contract that reflect the changes that were identified in the previous step.
• Have your attorney review the changes and make sure they comply with all applicable laws and regulations.
• Once the amendments are drafted and reviewed, you can move on to the next step.

Executing the amendments to the purchase contract

• Obtain signatures of both parties on the amended purchase contract.
• Ensure all amendments to the contract are valid and legally binding.
• Have the contract notarized if required.
• Make sure a copy of the amended, signed and notarized purchase contract is obtained by both parties.
• Check that the purchase contract has been correctly filed in the appropriate legal jurisdiction.
• Once all of the above tasks have been completed, this step is considered done and the purchase contract is now enforced.

Enforcement of the purchase contract

• Confirm that the purchase contract has been properly executed and signed by both parties
• Ensure that all applicable laws and regulations have been adhered to
• Determine the enforcement options available for the purchase contract, such as legal action, arbitration, or mediation
• Document any disputes that may arise between the parties in order to protect the rights of both parties
• Create a plan of action for how to respond to any potential violations of the purchase contract
• When all of the above steps have been taken, the purchase contract can be enforced and enforced effectively.

Understanding the enforcement options available for the purchase contract

• Understand the potential remedies available to enforce a purchase contract, such as specific performance, injunction, damages, and restitution.
• Research the applicable laws in your jurisdiction to identify the potential remedies available.
• Consider the potential consequences of taking legal action against the other party.
• Review the contract to determine which remedies are allowed.
• Consult with an attorney to ensure you understand the full legal implications of your options.

When you can check this off your list:

• When you have a full understanding of the potential remedies available for enforcing a purchase contract.
• When you have researched the applicable laws in your jurisdiction and determined the potential remedies available.
• When you have reviewed the contract to determine which remedies are allowed.
• When you have consulted with an attorney to ensure you understand the full legal implications of your options.

Taking appropriate action to enforce the purchase contract if required

• Determine what action is necessary to enforce the purchase contract
• Consider any available legal remedies or alternatives
• Contact the other party or their legal representative to negotiate an agreement or settlement
• File a lawsuit in court if necessary
• Follow the court’s decisions and orders to enforce the contract
• Monitor the other party’s compliance with the agreement or court order

You can check this off your list and move on to the next step when you have taken the necessary action to enforce the purchase contract, or when you have a settlement agreement or court order in place.

Seeking legal advice if necessary

• Research and consult with a qualified real estate attorney to ensure that all legal matters are handled properly
• Ensure that the attorney has a thorough understanding of the purchase contract and all of its clauses
• Request that the attorney review the purchase contract and provide feedback on any changes or modifications that may be necessary
• Once the attorney has reviewed and approved the purchase contract, keep a copy of their signed approval on file
• Check this off your list once the qualified attorney has reviewed and approved the purchase contract.

FAQ

Q: What happens if I don’t include an addendum in my purchase contract?

Asked by Avery, on 3rd July 2022.
A: Leaving out an addendum can create potential issues between the buyer and seller. An addendum is a document that is added to the purchase contract which sets out additional terms and conditions that may not be covered in the main contract. Without this, the buyer and seller may not have a clear understanding on certain aspects of the purchase, such as payment terms, timelines and other important details. It’s therefore best practice to include an addendum in any purchase contract to ensure both parties have a clear understanding of their obligations.

Q: How do I ensure my purchase contract is legally binding?

Asked by Ryan, on 24th June 2022.
A: To ensure your purchase contract is legally binding, you must include all essential details related to the agreement between the buyer and seller. This includes the full name and contact details of both parties, a description of the goods and/or services being purchased, payment terms and conditions, delivery and/or installation dates, warranties and any other information that is relevant to the agreement. All parties must sign the document for it to be legally binding, so make sure you have everyone’s signature before finalising the agreement.

Q: How do I protect myself if there are disputes related to my purchase contract?

Asked by Emma, on 16th April 2022.
A: To protect yourself against any disputes related to your purchase contract, you should ensure that you include clauses that outline how disputes should be handled in the event they arise. This could include clauses related to arbitration or mediation processes which must be followed before legal action can be taken. Additionally, you should include clauses which outline jurisdiction - i.e. which country or state will be responsible for resolving any disputes - and how the laws of that jurisdiction will apply in such cases.

Q: What happens if one party changes their mind about a purchase contract?

Asked by Liam, on 31st January 2022.
A: If one party changes their mind about a purchase contract after it has been signed by both parties, it is important to address this quickly and professionally as it has implications for both parties. If possible, renegotiate the terms of the original agreement to take into account any changes in circumstances or expectations. If this isn’t possible then it’s best practice to draw up a new contract or amendment reflecting these changes before it can be signed by both parties again.

Q: Can I use a template for my purchase contract?

Asked by Ava, on 12th May 2022.
A: Using a template for your purchase contract can be a useful starting point when writing up an agreement between buyers and sellers. However, templates are only designed to provide general guidance on what should be included in such contracts and may not take into account specific legal requirements relating to your industry or sector. Therefore it’s always best practice to consult with a lawyer who can provide tailored advice on how best to write up your agreement according to your particular needs.

Q: Are there any specific UK laws I should consider when writing my purchase contract?

Asked by Noah, on 8th August 2022.
A: Writing up a legally binding purchase contract involves understanding local laws which relate to contracts in general as well as specific regulations regarding sales of goods or services in your industry or sector. In the UK there are several laws that should be considered when writing up a purchase contract such as The Consumer Rights Act 2015 (which applies to consumers buying goods or services from businesses) and The Sale of Goods Act 1979 (which outlines certain rights and responsibilities between buyers and sellers). It’s important to consult with a lawyer who can provide tailored advice on how best to write up your agreement according to your particular needs and local laws.

Q: Is a verbal agreement considered legally binding?

Asked by Abigail, on 22nd September 2022.
A: Verbal agreements can be considered legally binding depending on certain factors such as whether there was an intention from both parties to create legal relations when making the agreement and whether there was an exchange of consideration (i.e goods or services). However, verbal agreements are often difficult to enforce if there is a dispute between both parties due to lack of evidence or written records of what was agreed upon. It’s therefore best practice to put all agreements into writing in order for them to be legally binding - this will help clarify any potential disputes that may arise between buyers and sellers down the line due to misunderstandings or disagreements over what was agreed upon verbally.

Q: What happens if I need amendments made after signing a purchase contract?

Asked by Michael, on 5th October 2022.
A: If you need amendments made after signing a purchase contract then you should speak with the other party involved before making any changes as they will also need to agree with them for them to be valid under law. You can either draft up an amendment document outlining all proposed changes which must then be signed by both parties or make changes directly onto the original document itself (although it’s important that both parties initial each change). Amendments can also be verbal but these are more difficult enforce if there is a dispute between both parties due lack of evidence or written records of what was agreed upon.

Q: What if one party breaches the terms of my purchase contract?

Asked by Elijah, on 19th November 2022.
A: If one party breaches the terms of your purchase contract then this could result in legal action being taken against them depending on how serious the breach is or how much financial damage has been caused as result of their action/inaction (if any). However, it’s important that you first attempt alternate methods of resolving disputes rather than going straight for legal action - such methods could including mediation/arbitration processes being followed in accordance with what was outlined in your original agreement (if applicable) before seeking legal advice from a lawyer who can provide tailored advice depending on your particular circumstances.

Example dispute

Suing for Breach of Contract:

• Plaintiff may raise a lawsuit against a company for breaching a contract if it can be shown that the company failed to fulfill its obligations as specified in the contract.
• The purchase contract should specify the exact terms of the agreement between the parties, including any required payments, and the timeframe in which the obligations should be fulfilled.
• The plaintiff must prove that the defendant failed to fulfill their obligations as specified in the contract, and that this breach caused them to suffer damages.
• To win the case, the plaintiff must provide evidence which demonstrates that the breach of contract caused them harm, and that they are entitled to compensation.
• If the plaintiff is successful in their case, the court may order the defendant to make up for the losses suffered by the plaintiff, or order the defendant to pay a certain amount of money as compensation for the breach.
• Additionally, the court may also order the defendant to pay the plaintiff’s legal fees and costs associated with filing the lawsuit.

Templates available (free to use)

Asset And Shares Purchase Contract Us Style Cross Border Acquisitions
Asset Purchase Contract Buyer Friendly Long Form
Asset Purchase Contract Buyer Friendly Simple
Asset Purchase Contract Buyer Friendly Simple California
Asset Purchase Contract Buyer Friendly Simple New York
Asset Purchase Contract Buyer Friendly Simple Texas
Asset Purchase Contract Seller Friendly Long Form
Asset Purchase Contract Seller Friendly Simple
Asset Purchase Contract Seller Friendly Simple California
Asset Purchase Contract Seller Friendly Simple New York
Asset Purchase Contract Seller Friendly Simple Texas
Asset Purchase Contract Specified Assets
Convertible Note Purchase Contract With Short Form Note Seed Stage Startup
Founder S Shares Purchase Contract Startups
Membership Interest Purchase Contract Buyer Friendly Long Form
Membership Interest Purchase Contract Buyer Friendly Long Form Disregarded Entity
Membership Interest Purchase Contract Buyer Friendly Simple Majority Interest Texas
Membership Interest Purchase Contract Buyer Friendly Simple Minority Interest
Membership Interest Purchase Contract Buyer Friendly Simple Minority Interest California
Membership Interest Purchase Contract Buyer Friendly Simple Minority Interest New York
Membership Interest Purchase Contract Buyer Friendly Simple Minority Interest Texas
Membership Interest Purchase Contract Buyer Friendly Simple Texas
Membership Interest Purchase Contract Sale Of 100 Interest In Commercial Property Owner Purchaser Friendly
Membership Interest Purchase Contract Sale Of 100 Interest In Commercial Property Owner Seller Friendly
Membership Interest Purchase Contract Sale Of Non Managing Member Interest In Property Joint Venture
Membership Interest Purchase Contract Sale Of Non Managing Minority Interest In Property Joint Venture Seller Friendly Simple
Membership Interest Purchase Contract Seller Friendly Long Form
Membership Interest Purchase Contract Seller Friendly Simple Minority Interest
Membership Or Partnership Interest Purchase Contract No Realized Gain Certification Section 1446 F
Membership Or Partnership Interest Purchase Contract Non Foreign Person Certification
Non Simultaneous Exchange And Completion Share Purchase Contract Single Corporate Seller And Buyer
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