Free Purchase Agreement Templates. Download, Customize & Sign.

A solid purchase agreement should include: (1) identification of buyer and seller with full legal names, (2) a clear description of the asset, property, or business being purchased, (3) the purchase price and payment terms including deposits and installments, (4) the closing date and location, (5) contingencies such as financing, inspection, or due diligence conditions, (6) representations and warranties from both parties, and (7) default remedies and dispute resolution procedures.

In an asset purchase, the buyer acquires specific assets and assumes only agreed-upon liabilities - leaving behind unwanted obligations such as unknown debts or pending lawsuits. In a stock purchase, the buyer acquires ownership of the entire company by purchasing its shares, inheriting all existing assets and liabilities including contingent ones. Asset purchases are more common for small business transactions; stock purchases are typical for larger acquisitions where continuity of contracts and licenses is important.

Contingencies are conditions that must be met before the purchase can close. Common contingencies include: a financing contingency (the buyer must secure a loan), an inspection contingency (the property or asset must pass a physical inspection), an appraisal contingency (the asset must appraise at or above the agreed price), and a due diligence contingency (the buyer has a period to review financial records and confirm there are no hidden issues). If a contingency is not satisfied, either party may have the right to walk away without penalty.

No. A letter of intent (LOI) is a non-binding expression of intent to purchase, outlining the key proposed terms such as price and structure. It signals serious interest and provides a framework for negotiations but does not legally obligate either party to complete the transaction. A purchase agreement, by contrast, is a binding contract that commits the buyer and seller to the agreed terms once signed. LOIs typically precede purchase agreements in complex transactions like business acquisitions.

The consequences depend on the terms of the agreement and how far the transaction has progressed. Common outcomes include: forfeiture of the buyer's earnest money deposit if the buyer backs out without a valid contingency, a specific performance lawsuit compelling the breaching party to complete the sale, or a claim for damages covering costs incurred by the non-breaching party. Some agreements include liquidated damages clauses that cap the remedy. Always review the default and remedies section of your purchase agreement carefully before signing.

Yes. All templates are jurisdiction-flexible by design. Download any template and edit it in Word or PDF, or create a free Legitt AI account and let Lana AI tailor the governing law, purchase price structure, contingencies, and jurisdiction-specific provisions in under 60 seconds - no manual editing required.