A sales and purchase agreement (PA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. An PA serves as a basis for a transaction to take place, providing a framework of how the transaction will proceed, what is included in the transaction, and, if necessary, what is excluded from the sale. The purpose of an SPV is to aggregate funds in order to execute on a PA, or said another way, SPVs are used to aggregate funds to buy something and the PA is the legal document used to execute on that purchase. Company stock, real estate project, purchasing an interest in another SPV or venture fund, or any other private asset the SPV Organizer and its SPV investors see fit to purchase. See Stock Purchase Agreement (SPA).
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