Purchase Contract Definition
A purchase contract is a binding agreement between a buyer and a seller to exchange goods or services at a set price. The contract defines the terms of the sale, including the price, quantity, quality, and delivery date. It also sets out the buyer’s and seller’s rights and responsibilities.
The purchase contract is an important document because it protects both the buyer and the seller. It ensures that the buyer gets what they paid for, and that the seller gets paid for what they are selling. If either party does not uphold their end of the deal, they can be held liable in court.
A purchase contract should be clear and concise, so that there is no room for misunderstanding. Both parties should read and understand the contract before signing it. Once it is signed, it is legally binding and cannot be changed without both parties’ agreement.
