Sales and Purchase Agreement Template

What Is a Sales and Purchase Agreement?

A sales and purchase agreement (SPA) is a written document that describes the main terms of a transaction between a buyer and a seller. It outlines what is being sold or purchased, how payment occurs, and when ownership or delivery takes place. SPAs are commonly used for transactions involving goods, assets, or combined goods and services.

In some business arrangements, the overall transaction may be divided into two parts: one covering the sale of physical goods and another covering the related services. This approach separates how each part of the transaction is documented while keeping the process organized and transparent.

Sales Agreement vs. Bill of Sale: Key Differences

Although both documents relate to buying and selling, a sales agreement and a bill of sale serve different purposes.

• Bill of Sale: Records the completed transfer of ownership once payment and delivery have been made. It functions as proof that the buyer now owns the goods.
• Sales Agreement: Describes the transaction terms before completion, such as the price, delivery timing, and any product conditions or warranties. It serves as the written outline of what both sides have agreed upon before the exchange is finalized.

Common Elements Found in a Sales and Purchase Agreement

Sales and purchase agreements typically describe several core details of the transaction. While formats may vary, most versions reference:

• Parties Involved: Names and contact information of the buyer and seller.
• Location: The place where the seller or transaction is based.
• Description of Goods or Services: A clear listing of the items or services being exchanged.
• Price and Payment Terms: How the price is set and how payments will occur.
• Delivery Details: The method, timeline, or responsibility for delivering the goods.
• Liabilities and Warranties: General information about product condition and responsibilities of each party.
• Signatures: The confirmation that both sides acknowledge the outlined terms.

These elements appear frequently in agreements used for a wide range of commercial transactions.

Sales Agreement vs. Purchase Agreement

The terms "sales agreement" and "purchase agreement" may be used interchangeably, though each reflects a slightly different viewpoint.

• Sales Agreement: Focuses on the seller’s position, describing the terms under which they agree to sell goods or services.
• Purchase Agreement: Reflects the buyer’s perspective, summarizing the terms they agree to when buying goods or services.

Both documents generally contain the same core information, such as item descriptions, payment structure, and delivery terms, but the title may differ depending on who initiates the transaction.

Sales and Purchase Agreements in Summary

A sales and purchase agreement is a written document that describes the main details of a transaction between a buyer and a seller. It typically lists what is being exchanged, the payment terms, and how delivery or transfer is expected to occur. These agreements are used to record transaction details in a structured and traceable format. Sales and purchase agreements are commonly used across industries such as retail, real estate, manufacturing, and professional services. They apply to transactions involving goods, assets, or defined services and provide a standardized way to document the exchange.