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Car dealerships use a car purchase agreement, or car sale agreement, to finalize a sale. These contracts serve as a sales agreement between the buyer and seller. If you are purchasing a used vehicle from a private seller, the seller may ask you to sign a bill of sale, which is a very simplified form of car purchase agreement.
December 13, 2010. 1  A purchase contract, also referred to as a contract to purchase or a purchase agreement, is a legal contract formalizing one party's offer to purchase another party's goods. 2  Determine whether the contract can be cancelled. 3  Prepare a formal cancellation letter.  Explain the reason for the cancellation in the body of the letter.