Sales And Purchase Agreement - SPA

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Dictionary Says

Definition of 'Sales And Purchase Agreement - SPA'

A legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the interests of both parties before closing the deal.
Investopedia Says

Investopedia explains 'Sales And Purchase Agreement - SPA'

Sales and purchase agreements are also found in the upper supply chains of many large, publicly-traded companies. They are set up to help both the suppliers and the purchasers forecast demand and costs, and become increasingly important as the size of the deals increases.

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