If you have made payment for the purchased Motor Cycle, what proof do you have that you have paid the purchase amount? If the seller has not issued any Receipt for the money received, you can ask for the same as a security against payments made.
For any type of buying, selling, borrowing and lending transactions, it is essential that, the payment acknowledgment form should be issued for the money received. The receipt is not only issued for the full payment received but, also for the installment payments. For example, you have bought a car and paid initial down payment now and agreed to pay balance amount in equal 12 installments. You have subsequently paid 6 due installments but, the seller overlooks your sixth installment and insists that you have only paid 5 installments. In such case, you can easily produce the cash receipt, issued by the seller for the sixth installment and, convince him about your payment. Imagine, the scenario, if you were not issued any payment acknowledgment Form. It would have been sure nightmare, if you were made to pay, the paid installment again.
These reasons make it necessary for the buyer, to ask for the written Receipts for any payments made by him. The written document is legally binding on the seller and such form can be produced in the court of law for any dispute settlements. Verbal acknowledgement is not valid in the eye of the law.
By acknowledging the receiving of payment, the seller fulfills his obligation and buyer or borrower secures his payment amount.
If you have received any full or installment payment for lending amount, services rendered, goods sold or any other financial transactions, you can freely use below given Receipt template for acknowledging the payment receipt.
BE IT KNOWN, that the undersigned hereby acknowledges receipt of the sum of $______________
paid by ____________________________________, which payment constitutes ______________
[indicate full or partial] payment of the below described obligation:___________________________________
If this is in partial payment of said obligation, the remaining unpaid balance on this date is $_____________.
Signed this _____ day of __________________, 20____.