Agreement Of Purchase And Sale Definition
A P&S agreement is not required for all transactions and is normally used for a single large purchase. In some cases, it is used for a number of frequent purchases over a period of time. The most common use of the P&S contract is the sale and purchase of real estate. However, this type of agreement can also be used for companies that purchase large quantities of equipment from one supplier or if the company buys another company. The agreement can also be used when buying other types of assets. To enter into the agreement, Larry writes a purchase agreement that sets out the transaction, including the purchase price. He keeps the deed on the field while Derrick makes monthly payments. Once Derrick has paid the amount of the deal, Larry will transfer the deed home to Derrick. .