Buy/Selling Contracts

Discussion in 'Site Flipping' started by AceOfDreams, Sep 5, 2012.

  1. AceOfDreams

    AceOfDreams Junior Member

    Aug 21, 2012
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    Is it required to draft up a contract for either buying or selling, and then having both parties sign?

    If I was interested in having a contract drafted up, where would I look to learn how to draft one up?

    Furthermore, how do parties sign the contract. Do they just provide their signature in Microsoft Word, or do they print it out, sign it, and scan it back in?

    If one party were to require a contract be signed, when would signing the contract take place? Would it be after the bid is won and before the transfer of payments/domains/files/etc, or would it be signed after everything is complete, which includes the payments, and transfer of everything?

    Is it worth getting a contract drafted up? Or would it only be necessary for large transactions? If so, how large should the transactions typically be for?

    Just some questions that I'm interested in getting the answer to :)
  2. bryanon

    bryanon Executive VIP

    Oct 16, 2009
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    Required by whom? I'm not aware of any laws (in the US or the UK) that would say that you must have a written contract in place for the buying and selling of assets. That said, it is strongly suggested to have one to avoid any misunderstandings at a later stage of the deal.

    Depending on the size of the deal and your relationship with the buyer you can either have an attorney draft the agreement or google for sample ones. There's plenty out there.

    Generally speaking, the rule of thumb for online transactions is to print-sign-scan.

    Assuming you're talking about Flippa, the contract should be negotiated/signed right after the auction has been won. How can you imagine doing it later? After all, the main things that you want the contract to regulate are the transfer of assets and the consideration.

    How long is a piece of string?
    Personally, I probably wouldn't bother with a formal agreement for a sub-$5k deal, but then again by doing this I also acknowledge that I can get screwed on this deal. For you, this level may be higher or lower.
    Sign a contract if you want to make sure that the deal goes smoothly and if it's sizable enough for you that you can't easily afford having it go south.