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it is a mutually binding contract between the buyer and seller and includes terms and conditions such as asset purchased, purchase consideration, representations and warranties, closing conditions, etc. a dpa is sometimes known as a “stock purchase agreement” or “definitive merger agreement.” a definitive purchase agreement is used as a document to transfer the ownership of a company. this type of transaction is also known as a “stock sale.” in an asset purchase agreement, the individual assets are transferred from the seller to the buyer, rather than the entire company. it will describe how the buyer and seller are referred to in the document, the meaning of the closing date, sufficient working capital, etc.