Sales and Purchase Agreement (SPA)

A Sales and Purchase Agreement (SPA) is a legal contract between a buyer and a seller outlining the terms for transferring ownership of an asset, often a business or real estate. It specifies details like the price, payment terms, conditions that must be met before the sale is completed, and responsibilities of each party. The SPA helps ensure both parties agree on key details, reduces misunderstandings, and provides legal protection by clearly defining the transaction process. It’s an essential document in major transactions, formalizing how and when ownership will change hands.