How To Draft an Equipment Purchase Agreement

Standardized Legal Documents How To Draft an Equipment Purchase Agreement

Upgrade Your Infrastructure With an Equipment Purchase Agreement

You rely on the equipment you use for your organization’s success.

Buying new equipment for your company is fraught with danger, particularly in the case of second-hand items. You run the risk of being landed with faulty equipment that doesn’t perform as expected or breaks down after a week.

We know that legal documents can be a minefield and that not everybody feels comfortable drafting contracts. DoNotPay can help you avoid this by showing you how to write a watertight equipment purchase agreement.

When Do I Need an Equipment Purchase Agreement?

If you are buying equipment from a dealer or a shop, you are automatically entering into a contract with the seller. This contract is governed by laws administered by the Consumer Protection Bureau and offers you protection against unfair or illegal trading practices.

If you buy equipment from a private seller, though, you need an equipment purchase agreement to put the deal in a legal framework and give you recourse in case things go wrong.

This is even more valid if the equipment you are buying is pre-owned—an equipment purchase agreement is essential to protect you.

What Are The Risks of Buying Equipment From a Private Seller?

Buying from a private seller is often a way to get sought-after equipment cheaper than through a retailer or dealer.

There are risks, though, particularly in regards to the condition and longevity of the product you are buying. The risks include:

  • The equipment doesn’t work as advertised
  • The equipment breaks down
  • Spares are unavailable
  • The seller takes your money and fails to deliver the product
  • Damage is not disclosed before the sale

An equipment purchase agreement can mitigate most of these risks if it is well-written and comprehensive.

What Needs To Be in an Equipment Purchase Agreement?

You need to include these points in your equipment purchase agreement:

  1. Names and details of the parties
  2. Description of the equipment
  3. Payment
  4. Delivery terms
  5. Warranties or guarantees
  6. Governing law

Names and Details of the Parties

You should include the full names, addresses, and contact details of all the parties to the contract. If you are financing the equipment purchase through a third party, their details should also be included.

Description of the Equipment

You should describe the equipment fully, including:

  • Name of the manufacturer
  • Model name or number
  • Serial number
  • Visual description


The total purchase price should be inserted here, as well as any payment terms you have agreed on with the seller.

If you have negotiated a series of part payments, you should include a schedule for when these will be made and a note to confirm that ownership will only be transferred to you once the final payment has been made.

Delivery Terms

Any arrangement you have made to have the equipment delivered should be captured in the agreement.

You can also note that the equipment remains the responsibility of the seller until it has been delivered, meaning that the seller is responsible for rectifying any damage that occurs in transit.

Warranties or Guarantees

Your equipment purchase agreement should include the following general warranties and guarantees:

  • The seller warrants that they are the rightful owner of the equipment and are entitled legally to transfer ownership to the buyer
  • The buyer agrees to accept the equipment as seen unless otherwise stipulated by any warranties the seller has offered
  • The buyer is responsible for paying any taxes, licenses, or fees upon completing the purchase
  • The buyer indemnifies the seller against claims for any loss or damage and holds the seller harmless
  • If the buyer is financing the purchase via a third party, the seller agrees to transfer ownership to that third party

Governing Law

You should include the names of the state laws under which the agreement falls.

Can DoNotPay Help Me With an Equipment Purchase Agreement?

Using the above guidelines, you should be able to draft your own equipment purchase agreement, bearing in mind that you should make sure it is signed by both parties and notarized to give it legal weight.

DoNotPay can help you set up many different agreements, legal documents, and contracts.

We have a range of contract templates that you can customize to your requirements. Getting your tailor-made document is easy and quick—here’s what to do:

  1. Navigate to DoNotPay in your web browser and sign up
  2. Use the search function to find the document you need
  3. Give us the details you want included
  4. Wait while we create your customized document

What Legal Documents Does DoNotPay Have?

We are constantly expanding our range, and here are a few examples of what we can offer:


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Our app is all about saving you time and money. Forget about the obsolete fax machine and post office—you can use DoNotPay to send faxes, mail letters, and connect with your incarcerated loved one.

DoNotPay Goes Above and Beyond To Help

We understand how bureaucratic hurdles get too much to handle. This is why so many of our products deal with these types of issues. From getting a document notarized, filing a warranty claim, and skipping the phone line when calling customer service to requesting a refund, booking a DMV appointment, and drawing up legal documents—there’s not much we can’t do for you.

Dealing with the never-ending paperwork is a thing of the past for DoNotPay users! Our app makes it easy to:

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