Financial Legal Forms Tips

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What needs to be included on a bill of sale?

Bill of Sale

A bill of sale is an agreement for the sale of goods that attest to the transfer of ownership from a seller to a buyer. The bill of sale will serve as a receipt of goods for the buyer.

A bill of sale should include the following:

  • The item or items that are sold
  • Name and contact information of both the seller and buyer
  • Amount paid for transfer of ownership of said items
  • Any guarantees on said items
  • Signature of both the seller and the buyer
Fortunately, instead of having to draw up a bill of sale yourself, you can customize and purchase a convenient bill of sale form from RocketLawyer.com

   
Do I need a promissory note if I am loaning money to a relative?

Promissory Notes For Loans to Relatives

If you lend money to another person with the expectation that they are going to repay you, it is in your best interest to require the individual to sign a promissory note. Legal financial documents such as promissory note forms play an important role in protecting the interests of the lender. If the terms of a loan are not specified on a promissory note, the lender basically has no way to enforce repayment.

Money issues can become a significant source of friction among relatives, and it is important that the terms of family financial transactions are spelled out clearly for all parties involved. If a family member who wants to borrow money from you balks at the idea of signing a promise to repay you, that should be an obvious sign to you that the likelihood of getting your money back is slim.

If you can afford to “give” the money with no reasonable expectation of repayment, it is certainly your choice to do so. However, if you expect repayment, you need to put the agreement in writing in the form of a promissory note.

When each party involved is clear on the details of the loan agreement, there is a reduced likelihood of problems developing. When making a loan to a relative, the promissory note template forms available on Rocket Lawyer's website can provide a practical and simple solution to drafting legal documentation that specifies the terms and conditions of the loan and the manner in which it should be repaid.

   
What is the difference between a secured promissory note and an unsecured promissory note?

Differences Between Secured and Unsecured Promissory Notes

Promissory notes are written promises to repay a debt. Promissory notes can be either secured or unsecured. Unsecured promissory notes are often referred to as signature loans and collateral is not required for unsecured loans. Personal loans typically represent unsecured promissory notes.

A secured promissory note is one that is secured by collateral of some type. Mortgage loans, for example, are secured by the home on which the loan is made. If a borrower defaults on his or her mortgage loan, the loan maker can foreclose on the house, thereby recovering part or all of the debt by taking possession of the item securing the loan.

When making an unsecured loan to an individual, it is important to realize that there is a very real possibility that the loan might not be repaid. If you are loaning more money that you can afford to lose, it is in your best interest to demand a secured promissory note.

   
Why is it important to complete a bill of sale?

Vehicle Bill of Sale For Statute of Frauds Compliance

If you are buying or selling an automobile for $500 or more in the United States, the sale transaction must be documented in writing in order to be legally enforceable. This regulation falls under the Statute of Frauds under the Uniform Commercial Code, which actually states that written documentation is necessary for the sale of most types of goods sold for $500 or more.

A vehicle bill of sale serves as written documentation of the sale and terms of the agreement, and can be an important protection for both buyers and sellers. Without such written documentation, either party to the sale, assuming the cost of the vehicle is $500 or more, would have the right to void the agreement under the Statute of Frauds.

There is no reason to take the chance of running into an unnecessary problem with contract enforceability when purchasing or selling a vehicle. Completing bill of sale forms can be very simple, particularly when you use an online bill of sale template like the ones you can find at Rocket Lawyer.

   
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