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When a buyer and seller enter into a sales agreement, they are creating a legally binding contract that outlines the terms of the transaction. This agreement establishes the obligations and rights of both parties, and it serves as a guide for the entire sales process.

The sales agreement typically outlines several key components, including:

1. The parties involved: The agreement will identify the buyer and seller by name and contact information.

2. The item or product being sold: The agreement should describe the item or product being sold with sufficient detail, including any relevant specifications, features or limitations.

3. The purchase price: This is the amount of money the buyer agrees to pay the seller in exchange for the item or product. The agreement may also include information about any financing or payment plans.

4. The delivery or shipping terms, including any applicable taxes or fees: This section outlines how the item or product will be delivered, who is responsible for shipping and handling, and whether there are any additional costs associated with the sale.

5. The warranty or guarantee: In some cases, the seller may include a warranty or guarantee for the item being sold, specifying its quality and functionality.

6. The dispute resolution process: This section outlines how any disputes or conflicts between the buyer and seller will be handled.

Once the agreement is signed by both parties, it becomes a legally binding contract. This means that each party has a legal obligation to fulfill their obligations and meet the terms outlined in the agreement.

In the event of a breach of contract, the parties may need to seek legal remedies to resolve the issue. This could include mediation, arbitration or litigation.

Overall, a sales agreement is a critical component of any transaction between a buyer and seller. By clearly outlining the terms of the sale, it provides clarity and protection for both parties and helps to ensure a successful transaction.