1. Bill of sale to CYA. Should have the date sold, make/model/serial number of gun, how much it was sold for or given as gift, name of person sold to. They sign it, you keep it.
2. They might desire the same from you as a receipt for their money.
3. The law does not make it illegal to sell to a prohibited person. The law makes it illegal for you to sell to a person that you know or have reasonable belief to be a prohibited person. So, ask for driver's license - why the name covered up? - that way you have reasonable proof of their name and state of residence. If you want to ask, are you prohibited in any way from possessing a firearm, you can. In Oregon, to the best of my knowledge, there is no minimum requirement for proof of eligibility in a private sale, so it's up to "the man" to prove that you knew or had cause to believe they were prohibited when you sold the gun to them. The bill of sale will also CYA in this regard, if the person was prohibited, then why in the world would they make a written "confession" of their receipt of a firearm by signing a bill of sale?