What Is a Purchase Agreement?
A purchase agreement is a contract in which the seller agrees to transfer ownership of a good to the buyer in exchange for payment. It is formed when both parties agree on the item and its price.

 
Main Characteristics
Purchase agreements have the following features:

• Principal: It is the main contract governing the transaction.

• Bilateral and Reciprocal: Both buyer and seller have obligations.

• Onerous: There is a defined price, with economic benefit for both.

• Commutative: Ownership transfers without altering the good’s value.

• Consensual: Requires explicit agreement from both parties.

 
Obligations of Each Party

✔ Seller’s Obligations

• Transfer ownership or the right to the buyer

• Deliver the good in proper condition

• Ensure peaceful possession and address eviction claims

• Resolve hidden defects covered by the agreement

✔ Buyer’s Obligations

• Pay the agreed price (plus interest in case of delay)

• Receive the good in satisfactory condition

 

How to Formalize a Purchase Agreement
A proper contract should include:

• Date and place of signing

• Names and details of buyer and seller

• Detailed description of the good

• Price and payment terms (installments if any)

• Interest rate in case of delayed payment

• Clauses such as retention of title if applicable

 

Purpose of a Purchase Agreement
The agreement records the rights and duties of each party, providing legal protection if one fails to comply.

 

Types of Purchase Agreements

• Retention of Title

• Conventional Retraction

• Conditional (“ad gustum”)

• Exchange

• Pactum de retrovendendo

• Installment purchase

• Civil contract (Civil Code)

• Commercial contract (Commercial Code, movable goods only)

 

Key Recommendations

• Consult a lawyer to tailor the contract to your case

• Disclose hidden defects to avoid disputes

• Draft a separate contract for each transaction

• Ensure complete documentation and proper delivery

 

Conclusion
Drafting a clear and complete purchase agreement protects both buyer and seller. From basic details like price and item description to special clauses, ensuring accuracy reduces risks and provides legal security. Professional guidance is highly recommended, especially for significant transactions such as real estate.