An agreement of sale, also known as a purchase agreement or sales contract, is a legally binding contract between a buyer and a seller outlining the terms and conditions of a real estate transaction. This agreement typically sets forth the details of the property being sold, including its description, purchase price, and any contingencies or conditions that must be met for the sale to proceed. Common provisions found in an agreement of sale include the closing date, financing terms, earnest money deposit, and any warranties or representations made by the seller. Once both parties have agreed to the terms and signed the agreement, they are legally obligated to fulfil their respective obligations, subject to any contingencies or conditions specified in the contract. The agreement of sale serves as a framework for the real estate transaction and provides legal protection for both the buyer and seller throughout the process.
A contract where a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions spelled out in writing and signed by both parties.
Noun
1. A legally binding contract between a buyer and a seller outlining the terms and conditions of a sale or purchase of a property, goods, or services.
2. Also known as a sales agreement or purchase agreement, it typically includes details such as the names and contact information of the parties involved, a description of the item or property being sold, the agreed-upon price, payment terms, delivery or possession date, and any additional terms or conditions agreed upon by both parties.
3. The agreement of sale serves as a safeguard for both the buyer and the seller, ensuring that both parties are aware of their rights and obligations throughout the transaction process. It provides a clear understanding of the terms and conditions, minimizing the potential for disputes or misunderstandings.
4. Once signed by both parties, the agreement of sale becomes legally binding, and any breach of its terms may result in legal consequences. It is advisable for both parties to seek legal advice before entering into an agreement of sale to ensure their rights and interests are protected.
An Agreement of Sale is a legal document that outlines the terms and conditions of a sale between a buyer and a seller. It includes details such as the purchase price, payment terms, delivery date, and any warranties or guarantees. Once both parties sign the agreement, it becomes a legally binding contract. The agreement is typically used in real estate transactions, but can also be used for the sale of other goods or services. If either party breaches the agreement, the other party may seek legal remedies such as damages or specific performance.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
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