You Might Be Thinking…

“Isn’t it enough to just write who sells what to whom and for how much?”
The answer is: no, it isn’t. The law sets clear requirements a purchase agreement must meet, otherwise you risk invalidity or at least serious problems with enforcing your rights.

Clients Often Ask Me…

• What are the absolute minimum requirements for validity?

• Must the price always be stated exactly?

• What if the subject of purchase is not precisely defined?

• Can some elements be agreed later?

• What about the form – when is oral enough and when must it be in writing?

Purchase Agreement in a Nutshell

According to Section 2079 of the Civil Code, a purchase agreement is a contract where:

• the seller undertakes to hand over the item and enable the buyer to acquire ownership,

• the buyer undertakes to pay the purchase price.

To be valid, the agreement must contain essential elements:

1. Identification of the parties – who is the buyer and who is the seller.

2. Precise description of the subject of purchase – what is being sold.

3. Purchase price or a method of its determination – a clearly agreed amount or at least rules for calculation.

Risks and Common Mistakes

• Unclear subject – “selling a car” without VIN → invalid or disputable.

• Missing price – without a price or a clear calculation method, there is no agreement.

• Incorrect identification of parties – wrong company ID, missing personal details, incorrect address.

• Wrong form – for real estate, written form is not optional but mandatory.

Step-by-Step Guide

1. Correctly identify the parties – for individuals: name, date of birth, address; for companies: name, ID number, registered office, business register entry.

2. Describe the subject of purchase – as precisely as possible (e.g. car – VIN, type, year of manufacture; real estate – parcel numbers, cadastral area; goods – quantity, quality).

3. State the purchase price – in money or at least a method of calculation (e.g. “by weight,” “according to exchange rate list”).

4. Check the form – oral is enough for movables, but I recommend written; for real estate, written form is mandatory.

5. Add other provisions – not essential but protective (warranties, defects, escrow, contractual penalties).

Examples from Practice

• Car without a price – parties agreed to “determine the price later.” When they disagreed, the contract was invalid.

• House with wrong parcel number – the Land Register rejected the filing, delaying the deal for months.

• Company with wrong ID number – the contract was signed with a non-existent entity, the buyer lost legal certainty.

Why Be Careful with DIY Templates

Many “purchase agreement template free” versions cover the basics, but often incorrectly or incompletely. The key issue is that a template cannot check your data or ensure accuracy. A contract missing an essential element is like a house without foundations – it stands only until the first problem arises.

Lawyer’s Recommendation

Always check 3 things: parties, subject, and price. If any of them is missing, you don’t have a valid agreement. And don’t forget – the correct form is crucial.

Checklist of Essential Elements

✔ correctly identified parties
✔ precisely described subject of purchase
✔ price or method of its determination
✔ legally required form

FAQ

Must the price always be specified exactly?
Yes, or at least a clear calculation method must be agreed.

Is an oral agreement enough?
For movables, yes – but proving it is difficult. For real estate, written form is mandatory.

Can elements be agreed later?
Only if tied to an objective method of determination (e.g. price list, weight).