A sales contract (SPA) is a binding legal contract that obliges the buyer to buy and the seller to sell a product or service.
Sales contracts are often used in real estate transactions or when two parties enter into a deal with a large commodity or a large number of goods.
The SPA contains important information, including the asset, the selling price, and the payment terms for the sale.
The SPA also specifies due diligence periods, conditions that must be met prior to sale, and possible remedial action if the product was damaged prior to sale.
The SPA may include provisions on confidentiality, conditional sales, and brokerage commissions.