A sales and purchase agreement (SPA) is a binding and legal contract between two parties that obligates a transaction between the two parties: the buyer and the seller. SPAs are typically used for real estate transactions, but they are found in all areas of business. The agreement finalizes the terms and conditions of the sale, and it is the culmination of negotiation between the buyer and the seller.

Before a transaction can occur, the buyer and the seller negotiate the price of the item to be sold and the conditions for the transaction. The SPA is a framework for the negotiations process. The SPA is often used in cases of a large purchase, such a piece of real estate, or frequent purchases over a period.

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