A purchase agreement is a kind of contract that lays out the specifics of a sale of goods. Since the contracts are between buyers and sellers, they are binding by law and often include the purchase and sale of goods rather than services. They include dealings in almost every imaginable commodity. In the case of real estate, for instance, the purchase price and other conditions for transferring ownership are laid out in the contract. The terms "purchase agreement," "buy and sell agreement," and "sale contract" are also used. Purchase agreements are often used in transactions when the total price of...