Retail Installment Contract Vs Bill Of Sale For Vehicle In Palm Beach
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Whereas a sales contract is used prior to the exchange of goods, a bill of sale is used during or after the exchange of goods to transfer ownership of the goods from the seller to the buyer.
It is a legal document, similar to a contract, that makes a record of the agreement to sell and receive the goods. To be legally binding, the agreement is made consciously and some actions will now be either prohibited or required, depending on the situation: A bill of sale is a piece of evidence for the sale.
Additionally, it protects the seller in case of payment failure from the buyer. The bill of sale would give them legal proof to use in any formal complaint or lawsuit, if it came down to that. This limits the liability of the seller for malicious suits and theft of goods.
A bill of sale is more akin to a receipt rather than a contract. Since it is such a simple document, there is no way to truly enforce it. If the bill of sale is the only document you use in a transaction, it is best to ensure there is enough detail on it to make the transaction enforceable.
Because a bill of sale is a legally binding document, when drafting a bill of sale, it is very important to comply with your state's requirements and these requirements can vary by state.
RS: Retail Installment Seller – Chapter 520 Part II, Florida Statutes: The license authorizes any retail business to offer installment payments to its customers, for goods or services other than motor vehicle and home improvement businesses.
While it is common to present a bill of sale in a digital format, you can also create this type of contractual agreement as a handwritten document on paper. What's most important is to include all of the pertinent details in the bill of sale in order to protect both parties.
One of these documents is the bill of sale. While a bill of sale isn't legally required, and doesn't replace a title transfer, it is highly recommended and protects both the buyer and seller from fraud, theft, or mistakes.
It is important to make sure all the requirements for the respected state law are included in the bill of sale. As, with any legal written document a bill of sale can be handwritten.
One of the documents is the 'Bill of Sale,' also referred to as a 'Notice of Sale'. Although not legally needed in Florida since it doesn't actually replace the title transfer, it does provide extra protection both for the vehicle buyer and seller, and makes for an excellent personal record.
