A sales and purchase agreement (SPA) ensures that a sale and purchase in Rhode Island is valid and legally enforceable between the seller and buyer. The terms of the agreement allow a buyer to understand his or her responsibilities before agreeing to make a deal.
The purpose of a SPA
A sales and purchase agreement (SPA) is made between a buyer and a seller who wants to transfer ownership of property, stock or other assets. The PSA outlines the rights, duties and responsibilities of the buyer and the seller. The purchaser agrees to assume the responsibilities of the new asset, and the seller assures the buyers that the asset is valuable and in its stated condition.
All types of industries and companies require the use of transaction contracts. In some agreements, multiple sellers and buyers are included to share the duties of ownership.
A typical contract uses terms that are common in the industry, such as legal or construction, and terms that are unique to the specific sale. The date and time of the sale are included along with the names of each party and contact information. The amount of the seller’s interest, usually as a percentage, is included. A separate section has a complete listing of the assets and descriptions of each.
An agreement to sell and buy an asset is made in a legally binding contract. From retail to oil and gas industries, a sales and purchase agreement is used by nearly every business that sells or buys major, expensive items. Buyers and sellers are legally protected based on the specific details in the contract.