What kind of contract is commonly used in sales transactions?

A sales contract is a legally binding agreement between a buyer and a seller in which the seller agrees to transfer ownership of goods or services to the buyer for a specified price. This type of contract outlines the terms of the sale, including the description of the goods or services being sold, the purchase price, delivery terms, and the obligations of both parties.

In sales transactions, clarity and mutual consent are crucial, making sales contracts essential to ensure both parties understand their rights and obligations. This type of contract can vary in complexity, from simple agreements for one-time sales to more comprehensive documents for larger, ongoing business transactions.

The other options pertain to different contexts. A lease agreement specifically relates to the rental of property, a purchase agreement can be a broader term that might include sales contracts but often refers to real estate transactions, and a service contract governs the terms under which services will be provided rather than the sale of goods.