Most anywhere, contracts are required for the purchase of just about anything of significant value, like cars and homes. A personal contract purchase is made anytime a contract is drawn up between two or more parties for the purchase of an item or service, such as a car or house cleaning. These contracts typically protect companies from any liability regarding a purchase that a customer makes. In some countries such as the UK, a personal contract purchase refers to using and paying for a car for a period of time and then having the option to buy it or sell it back once the time period is over. This is similar to leasing programs in the US.
Basic items that should be covered in a personal contract purchase include names and addresses, a detailed description of the type of item to be sold or the service to be performed, and the terms of the purchase, including how much is paid for the item or service and when it should be paid. In the case of a personal contract purchase such as a lease for an automobile, the contract should also tell how much the car will be sold back to the company for if the person wants to return it, or how much the person needs to pay in order to keep the car.
Good contracts protect the interests of both parties. The use of a contract does not always require an attorney, even though hiring a good attorney would ensure that most bases are covered. There is a plethora of downloadable blank contract forms on the Internet. Even a note jotted on a piece of paper and signed by both parties can constitute an enforceable contract under law.
At its most basic, the contract should list the name and addresses of all parties so that it is perfectly clear which person is responsible for the terms. It should also list exactly what good or service will be exchanged. This must be as specific as possible. In the above example of a motorcycle purchase, the contract should list the make and model of the bike, the mileage on it, and whether or not any repairs or maintenance is needed. It should also list the price for which it is being sold and the specific type of payment that is acceptable.
Once a personal contract purchase is made and there is a signed agreement among all parties, the contract becomes legal and binding. In the eyes of the court, a signed contract between two individuals has as much weight as a signed contract between two companies. So it is important to make sure that all details are lined out as specifically as possible when making a personal contract purchase.