The following diagram describes the content of the final agreement. Note that this list contains only a framework and a general definition of the content of an agreement. Behind many elements are details that require advice from trained legal experts, which is why your broker and lawyer are important partners at this stage. The previous graph leaves little doubt that the sales contract is detailed and voluminous. It is also the basis of the negotiation between you and your buyer – not only on the price, but also on what is included (and excluded) in the purchase and how the agreed payment is paid and distributed among the asset classes defined by the IRS. The parties will likely have agreed on the purchase price in the MOU. However, the gross purchase price indicated in the MOU is different from the net proceeds the seller receives taking into account payments, holdbacks, disbursements and taxes. This sometimes comes as a surprise to sellers, so it is important that the seller discusses the financial and tax implications with his tax and financial advisors as soon as possible. When the buyer assumes certain debts or demands repayment of existing debts, the share of the purchase price in cash is reduced accordingly. Sales contracts can cover transactions for the sale of almost any type of goods. As a general rule, sales contracts are used for the sale of goods valued at more than $500, but can also be used for minor transactions.
Sales contracts are very common for the sale of a home or other types of real estate. A sales contract is a type of contract that describes the terms of the sale of the goods. As a legally binding contract between buyer and seller, agreements generally deal with the purchase and sale of goods and not services. They cover transactions for almost all types of product. In real estate, for example, the sales contract describes the purchase price and other terms of the title transfer. You can also call them a sales, sale and sale contract or sales contract.