By: PR Fueled

The strength of your sales agreement depends on how well it suits local laws. Looking at a New York bill of sale example will help here. This blog post outlines key considerations for creating a document that may meet the requirements of New York state law.

What Your Bill of Sale Needs

On the most basic level, you have to make sure your sale agreement ticks every box. It needs a few basic points to stand up in court, including:

• Details of the buyer and seller.
• A full description of the item.
• The item’s price.
• The date of the sale.
• Payment methods you’ll be using.
• Information on warranties.
• Both parties’ signatures.

Sometimes, such as if you’re buying/selling a firearm, you also need two witnesses to sign. This isn’t required for most general sales. Consider using an online template to help ensure your document includes all required fields.

Practices Your Sale Agreement Should Follow

Beyond the actual base requirements, there are certain unspoken rules for your bill of sale. The key points here are as follows:

• Clarity: The document has to be clear and unambiguous at each stage. Vague contracts may be more difficult to enforce in court. If there’s any confusion about the bill, change its wording.
• Full descriptions: If you’re selling, make sure you describe the item in full. Don’t neglect to mention any damages the item has. If you do, the buyer might challenge the sale.
• Arbitration details: It also helps to outline how to handle disputes. Neither side wants to go to court right away. Specify that you would like to try mediation before this point.
• Regular reviews: In the lead-up to closing your sale, check on the bill regularly. It’s good to get feedback from the other side, too. If you change anything, they need to know.
• Industry-specific documents: A general bill of sale won’t always be the right choice. In fact, several industries have extra requirements. You must then use more specific bills.
• Notarization: Only firearm sales require notarization. However, this helps you fortify any purchase. Consider getting a New York notary to verify the document for extra security.

The Uniform Commercial Code

All fifty states and US territories follow the Uniform Commercial Code. This sets out a few extra rules for a legally-binding sale. Here are the main highlights:

1. Statute of Frauds: For goods priced $500+, a written contract is compulsory.

2. Parol Evidence Rule: Oral testimony cannot overturn a sale agreement.

3. Battle of the Forms: Addresses conflicts that arise between different documents.

4. Seller’s Right to Cure: This lets the seller fix any defects in their item after the sale.

5. Perfect Tender Rule: A buyer may have the right to reject goods that fail to meet the contract’s terms.

Look over the UCC and make sure it fits your sale to the letter. If there are any discrepancies or other issues, bring this to the other side’s attention.

What Are Implied Warranties?

The UCC also sets out implied warranties for an item. These stipulate that the item must be to a certain “merchantability” standard. They must also be suitable for the specific purpose a buyer is purchasing them for.

Sellers could use a “disclaimer of warranties” to get around the UCC. Their disclaimer might say that their item isn’t new and, as such, isn’t in perfect condition. In any case, it’s good to agree on if the implied warranties apply.

Other Forms You Might Need

Depending on the type of good you’re buying or selling, other forms may be necessary. If you’re buying a vehicle, for example, you need to fill in a title application (MV-82) form. On top of this, a vehicle bill of sale must include the 17-digit vehicle identification number (VIN). 

Firearm transactions may involve additional steps. In New York, you might need to register the firearm with the New York State Police and complete a license application. In New York City, this process generally applies to all firearms, while in other areas of the state, it may apply primarily to handguns.

Every type of property is different. Make sure you double-check if there are any additional forms you need to fill out.

Do Electronic Signatures Work?

The E-Sign Act of 2000 stipulates that virtual contracts are still legally binding across the US. In addition, the Uniform Electronic Transactions Act governs e-signatures in 49 states. Notably, the only exception here is New York. Instead, it uses the Electronic Signatures and Records Act.

This act states that a virtual signature carries the same weight as a handwritten one. It’s unclear why New York still has yet to adopt the UETA. However, it may simply view this as unnecessary when ESRA takes care of its main points.

Final Thoughts

The state you’re in may impact how a bill of sale is handled, and the type of property being bought or sold can also play a role. It’s important to consider a sale agreement template that suits the specific details of your transaction.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It is intended to provide a broad overview of sales agreements under New York law. Laws may vary, and it is recommended that you consult with a qualified attorney for advice specific to your situation. The information provided is not a substitute for professional legal counsel.

Published by: Holy Minoza