A purchase and sale agreement (PSA) is an agreement between a buyer and a seller of
real estate property,
company stock, or other assets.
The person, company, or other
legal entity
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
acquiring, receiving, and purchasing the property, stock, or other assets is referred to as the ''buyer'' and the entity disposing, conveying, and selling the assets is referred to as the ''seller''. A PSA sets out the various rights and obligations of both the buyer and seller, and might also require other documents be executed and recorded in the public records, such as an assignment,
deed of trust, or
farmout agreement.
In the oil and natural gas industries, a PSA is the primary legal contract by which companies exchange oil and gas assets (including stock in an oil and gas business entity) for cash, debt, stock, or other assets.
References
Petroleum production
Sales
Land use
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