What is a Bill of Sale
Bill of sale refers to a documentation made by a seller to a purchaser affirming that the sale of a particular good was done with a certain amount of payment and that the ownership of the commodity has now changed. It is relatively a small piece of legal document that confirms the change of ownership of an entity. The bill of sale is aimed at protecting the buyer from cases of fraud since the vendor’s signature signifies that there is a change of ownership of that particular entity. There exist two types of bill of sale.
There is the absolute bill of sale which represents no security, it is simply a piece of legal document that signifies that there has been a transfer of goods plus other personal details which are nothing but mere contracts of sale of goods governed by the common law of contracts and sale of goods law. The other type is the conditional sale of goods which gives right to security of possessing a particular good.
The conditional bill of sale represents a legal document that shows the transfer of goods from one individual to another, it acts as a guarantee or a security of purchasing a particular entity. The difference between the two types of payments comes where for the absolute bill of sale the vendor issues a receipt for the full payment of the item while in the conditional bill of sale the vendor still keeps some legal documents of the items until the buyer completes full payment for the commodity.
Bill of sale originated in the 19th century as a written agreement between the vendor and the buyer showing that there was a voluntary transfer of an item in exchange of another. The bill of sale came about as a security to protect individuals against fraud and also ensure that illegal seizure of property was eliminated. The bill of sale has helped individuals to abide by the laws governing owning of property and prevent abuse of existing laws.
The bill of sale may contain the following information; the legal name of the vendor and the buyer should be listed in the bill of sale. In addition there address should be listed so that incase of any problems they can be traced easily. A brief description about the item should also be put down in the bill of sale. If there are any additional entities about the item like the signature of manufacturer or a serial number of the product then it should be included. Another very essential component in the bill of sale is the price of the item since this is what binds the buyer and the vendor together.