Glossary and Definitions
Bill of Sale
A "Bill of Sale" is a legal form that is used when you sell or transfer the ownership of goods from a seller (also called a "vendor") to a purchaser. A car dealership will prepare a bill of sale to document your purchase.
If you are purchasing a business and as part of the purchase you are purchasing all the equipment (eg. furniture, chairs, office equipment, inventory, and supplies), you should request that the seller (also called the vendor) provide to you a "Bill of Sale". A Bill of Sale will prevent the seller from later claiming that they own the items listed on the Bill of Sale.
The Bill of Sale can also include any other provisions that you wish to include such as the condition of the equipment (eg. "equipment is in good and working order, subject to reasonable wear and tear" or "equipment being sold as-is"), and other provisions such as a "warranty" by the seller that the seller is the owner of the equipment being sold. In the even that someone else claims they are the legal owners of the equipment, the warranty in the Bill of Sale would give you some legal rights to make a claim against the Seller.
The bill is sale is similar to a "sales receipt" however it contains additional legal terms regarding the purchase and sale. The document will serve as proof of the purchase and sale of specified items listed on the Bill of Sale.