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This agreement is most often used in transactions involving a purchase. Sometimes two parties will know that they want to do a business deal together, but they aren't ready to sign an actual agreement. For example, they may agree that one party will sell his or her business for a certain price, but they do not yet agree on who will take on certain liabilities of the business. The parties can sign this document to show each other a good faith intention to work out a deal. It can also help parties get on the same page as to what they expect from the purchase.

Purchase of a Business » used between the Seller of business and a potential Buyer of a business. Eventually, you would use a Business Purchase Agreement to complete the deal. Purchase of Real Estate » used between the Seller of real property and a potential Buyer of the real property. You would use a Real Estate Purchase Agreement to complete the deal. Purchase of General Property » used between the Seller of personal property, such as a car or jewelry, and a potential Buyer of the personal property. You would use a Personal Property Purchase Agreement to complete the deal. Other Transaction » used between parties to document a potential transaction, such as providing goods or services over a given period of time.

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