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Simple English definitions for legal terms
bill of sale
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A quick definition of bill of sale:
A bill of sale is a written document that proves someone bought something from someone else. It includes information like the names and contact information of the buyer and seller, what was bought, how much it cost, and any promises the seller made about the item. Bills of sale are often used when people buy cars, boats, or planes. They can also be used to show who owns something if they don't have it with them. There are two main types of bills of sale: absolute (when someone pays for something in full) and conditional (when someone borrows money to buy something).
A more thorough explanation:
A bill of sale is a written document that confirms the purchase of property from a seller by a buyer. It is similar to a receipt and includes information about the transacting parties, a description of the item sold, warranties made by the seller, conditions attached to the sale, date of transfer, price, payment schedule, and signatures of both parties.
- When you buy a car from a private seller, they will give you a bill of sale that shows you are now the owner of the car.
- If you sell your boat to someone, you will need to provide them with a bill of sale that includes the details of the transaction.
The examples illustrate how a bill of sale is used to document the transfer of ownership of property from one person to another. It is a legal document that protects both the buyer and seller by providing a record of the transaction.
There are two main types of bills of sale:
- An absolute bill of sale is used for the sale of goods and completely conveys property without any restrictions or scheduled payments. It is ideal for transactions that involve payment in full and items sold in "as is" condition.
- A conditional bill of sale is used for borrowing and financing and conveys property with conditions on the buyer's ownership. It is most appropriate for transactions involving loans, like the purchase of a house.
The types of bills of sale illustrate how they can be used in different situations, depending on the nature of the transaction.