By: Martin M. Shenkman, CPA, MBA, JD
An "agreement of sale", might also be called a "contract of sale", "purchase contract", "purchase and sale agreement", or by any number of similar terms. It is in general terms a legal document (contract) in which one person (party) called the buyer agrees to buy or purchase from another person, called the seller, specified items. The items being bought could be a house, in which case a "real estate contract of sale" or similar name might be used. It could be a contract to purchase a business, which might be a "stock purchase agreement" if the business is a corporation and the stock in the corporation is being purchased. In all cases the agreement should provide in clear detail who is selling what to whom and on what conditions. In most agreements of sale there are representations and warranties by each side of the transaction, often attached documents (called schedules or exhibits) providing further information (disclosures), specifications as to any conditions for the transaction to be concluded (called conditions to closing), etc. Be very careful using any boiler plate document. Any contract should be tailored to fit the specific issues in the deal you are doing.
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