Sales And Purchase Agreement - SPA

AAA

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 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.

RELATED TERMS
  1. Musawamah

    An Islamic finance term that describes a sale in which the seller ...
  2. At Sight

    A payment due on demand. An at sight payment will require the ...
  3. Demand

    An economic principle that describes a consumer's desire and ...
  4. Supply Chain

    The network created amongst different companies producing, handling ...
  5. Supply

    A fundamental economic concept that describes the total amount ...
  6. Obligation

    The legal responsibility to meet the terms of a contract. If ...
Related Articles
  1. Measuring Company Efficiency
    Fundamental Analysis

    Measuring Company Efficiency

  2. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  3. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  4. SEC Filings: Forms You Need To Know
    Investing Basics

    SEC Filings: Forms You Need To Know

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center