What does consideration mean on my bill of sale?
Key terms to know about a bill of sale.
A bill of saleis an important legal document for big transactions, like the purchase of a vehicle. It certifies the transfer of ownership from the seller to the buyer, providing the seller with liability protection and the buyer with proof of ownership. Both the buyer and seller should retain this document for their records, and both parties should also understand the basics before creating and signing one.
What is consideration?
The consideration is the value that the buyer transfers to the seller. Or, simply put and in most cases, the consideration reflects how much (or the dollar amount) the buyer spent to purchase the item. For instance, if the buyer purchases a car for $20,000 from the seller, the consideration is $20,000.
The consideration doesn’t necessarily have to take the form of money, but in most transactions the value of the item being sold and purchased is in currency. If the seller wants to transfer ownership with no consideraiton, however, then the parties should consider using a quitclaim deed instead of a bill of sale.
Create your document.
The seller is responsible for drafting the legal documentation. Whether as a seller you’re transferring ownership with or without consideration, you can easily put together the right document. Explore what more you can do with Acrobat Pro with e-sign to create forms and add legally binding signatures.