It is possible for a bill of sale to be absolute or conditional, depending on the terms contained in it. Generally, a bill of sale is recognized as a legally binding document.
As a result of a conditional bill of sale, the grantee is given a security interest of a possessory nature, as well as the personal right of seizure.
These are nothing more than simple contracts of sale covered by the common law of contract and the law of the sale of goods.Ī conditional bill of sale: Basically, a conditional bill of sale involves the assignment or transfer of personal property as collateral for payment. General forms of a Bill of Sale:Īn absolute bill of sale: A bill of sale that is absolute is not a security, but rather, merely evidencing transfers and other assurances of personal property. The seller simply has to sign the title to the purchaser. If the personal property has a certificate of title then, when signing the bill of sale, it should be changed to the buyer as well. The consideration (payment) can range from cash to services or a trade that everyone involved agrees on. A bill of sale is a simple document that records the terms of a sale and works to change the owner of personal/private property to another party. The bill of sale is often confused for something it’s not - like a receipt.
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