A sales and purchase agreement (SPA) is a legally enforceable Business Agreement between two parties that binds a buyer and seller to a transaction. SPAs are commonly utilized in real estate deals, although they may be used in any industry. The agreement is the result of talks between the buyer and the seller, and it sets the terms and circumstances of the transaction. Before a transaction can occur, the buyer and seller must agree on the price of the item to be sold and the transaction's terms. The SPA serves as a framework for negotiations. The SPA is frequently utilized when making a major purchase, such as real estate, or making many purchases over time. SPAs also provide extensive information on the buyer and seller. As negotiations progress, the agreement records any deposits made and highlights portions of the agreement that have already been satisfied. The agreement also specifies the date of the final sale.
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