purchase price
Definition
The purchase price is the total amount of money a buyer agrees to pay a seller to acquire something, whether that's a product, property, or entire business. This number gets locked into your contract and becomes the official, agreed-upon value of whatever you're buying or selling.
Example
If you agree to buy a piece of commercial equipment for $15,000, that $15,000 is the purchase price that will appear in your sales contract.
Watch Out
The purchase price in a contract is not always the final amount you actually pay, since taxes, fees, and other closing costs can significantly increase your total out-of-pocket expense.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.