Purchase agreements are used during the sale and purchase of goods or products. The agreement basically lists all the important terms and provisions related to the exchange. For instance, the agreement may state the selling price, quantities, and quality of the product. It may also list other related terms such as payment methods and delivery schedules. Service agreements are the counterparts of purchase agreements for the provision of services.
Purchase agreements are basically contracts that create legal duties between the parties. Violations of purchase agreements are remedied in a similar fashion to other types of breach of contract cases. Remedies can either be legal or equitable. Legal remedies may include:
Damages awards to cover losses directly caused by the breach (such as recovery of the payment price)
Damages awards to cover other losses "flowing from" the breach (such as a loss of business profit caused by the breach)
Equitable remedies can include:
- Reformation (rewriting of some or all of the contract)
- Rescission (cancelling of the entire contract)
- Injunctions (such as requiring the seller to deliver the goods)
The application of legal or equitable remedies will depend on several factors, including:
- State laws (contract laws can be different from area to area)
- The exact terms of the agreement
- The facts surrounding the breach incident
In some cases, the purchase agreement itself may outline the remedies that the parties should seek. Some agreements may allow the parties to file a lawsuit, while other agreements may limit remedies to mediation or other alternatives. These will all depend on the preferences of the parties.
Purchase agreements remedies may vary and will depend on a number of different aspects. You may need to hire a business lawyer if you need help seeking remedies for a breach of a purchase agreement. It may also be necessary to hire a lawyer if you need help drafting or reviewing a new purchase agreement. Your attorney can advise you on your claim and can also assist you when it comes to filing a lawsuit or legal action with a court of law.