Understand The Two Important Terms The bill of sale is one of the most important as well simple terms. Basically it is a legal document that acknowledges and certifies a specific pact, in which the ownership of an estate, property or an asset gets transferred from an individual or a group to a new owner. It is quite simple as well legal document that does not contain several complicated clauses or conditions to describe the purpose it solves. In short a bill of sale is especially designed by a seller to a purchaser, used to transfer or sell the ownership of items or goods such as boat, computers, cars and many other things from a vendor or a seller to a purchaser. This document can be categorized into two different categories such as, absolute bill of sale and conditional bill of sale. It is offered by a seller to the buyer generally depending on certain circumstances such as: • • • •
The names of the buyer and seller or vendor A list of products being sold and purchased Mode of payment and purchase cost May be also several legal terms relying on the complexity of the transaction
Apart from a bill of sale document there is also another legal document that plays important role in our life that is a promissory note. It is basically used to keep record of the loan transaction between more than single parties. It can be utilized in a wide range of real estate and financial transactions and also in personal and business loans. It comes in various types such as: •
Personal: It is most common kind of promissory note document and can be utilized for personal loans between friends, relatives or family members. This kind of notes offers a feeling of security. Investment: it is considered as the best method to raise capital for business. This kind of promissory note is issued to investors in exchange for a loan. Commercial: It is helpful when you borrow money from a commercial lender and almost similar to personal promissory notes. It outlines the interest rate, repayment terns and payment amount. Real estate: it is another kind of promissory note that can be utilized in real estate transactions.
Both documents are legal and have their own significance and importance in terms of business and our lives. These are specially designed to make the life of man trouble free. It is very important that everyone should have to be aware such kind of legal documents. These documents are really helpful to prevent the situations and chances of any kind of fraud.