A Stock Sale Agreement is a legally binding contract between the seller and buyer of a company’s stock, specifying the terms and conditions of the sale. It includes details such as the name of the parties involved, the price at which the shares will be exchanged, the rights and obligations of each party, and the timeline for completion of the transaction. The agreement also stipulates what happens if either side fails to fulfill their obligations — for example, if the buyer fails to make timely payment or the seller fails to complete all actions necessary to transfer ownership of the shares. A Stock Sale Agreement helps ensure that both parties clearly understand their involvement in the transaction, protecting them from potential financial loss and ensuring they both get what they agreed upon.