A Purchase Agreement is a legal document that outlines the terms and conditions of a transaction between a buyer and a seller. It specifies details such as the price, payment method, and delivery date for the goods or services being exchanged. This agreement helps protect both parties by clearly defining their rights and responsibilities. In real estate, a Purchase Agreement is crucial as it formalizes the sale of a property. It includes information about the property, any contingencies, and the closing process. Both parties must sign the agreement to make it legally binding, ensuring a smooth transaction.