A Purchase Agreement, also known as a Sales Contract or Agreement of Sale, is a legally binding document that outlines the terms and conditions of a transaction between a buyer and a seller. This agreement ensures that both parties understand their rights and obligations, including the sale price, payment terms, delivery details, warranties, and any contingencies that must be met before the sale is finalized. Typically used in real estate, business acquisitions, and large asset purchases, a Purchase Agreement protects both parties by providing a clear framework for the transaction and reducing the risk of disputes. Key elements often include a detailed description of the item or property being sold, conditions for closing the deal, and any relevant disclosures. Understanding the components of a Purchase Agreement is crucial for ensuring a smooth and legally compliant transaction.