Sales & Purchase Agreements (SPA) templates
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What is a Sales & Purchase Agreement?
A purchase agreement is a legal document that outlines the terms and conditions of a sale of goods. The agreement creates a legally binding contract between the buyer and seller. Purchase agreements are generally used in the sale and purchase of actual goods rather than services (which are called ‘service agreements’).
What are Sales & Purchase Agreements used for?
Purchase agreements can cover the sale of almost all types of goods. In general, they are used for the sale of goods worth over $500, however they can be used for transactions smaller than this. The most common use of purchase agreements are for the sale of a home, or other types of real estate. They are also very common in the telecommunications industry.
What is included in an SPA?
A good, well-written purchase agreement should include all information that is relevant to the transaction, and avoids the chance of a misunderstanding.
Here are some examples of the key information needed in a sales & purchase agreement:
Information on the buyer and seller
Witness and co-signer contact information
Type of sale and product involved
Price and quantities
Date and duration of the agreement
Delivery and shipping terms
Chance of agreement amendment
If litigation is an option in the event of a legal dispute
Therefore, SPA's tend to be more complex than a bill of sale. The main aim of the agreement is to outline the conditions that all parties involved need to fulfill in order for the sale to go forward.
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