how a sale works
a sale occurs whenever a seller of goods or services transfers ownership of and title to a product or service to a buyer in exchange for a specific amount of money or other assets to complete a sale both the buyer and the seller must agree to the specific terms of the transaction these terms can include the price quantity method of delivery and time of delivery importantly the good or service that is being offered must be available for exchange the seller must have the legal authority to transfer ownership of the item or service to the buyer if one party transfers a product or service to another without receiving compensation in return the transaction is more likely to be treated as a gift or a donation particularly from an income tax perspective 12every day millions of people take part in countless sales transactions across the globe this creates a constant flow of assets and forms the backbone of the world s economies types of salesto complete a sale both the buyer and seller must be deemed competent the product or service must be legally available to buy and the seller must have the authority to transfer it to the buyer both parties must agree on the terms of the sale ways to payin general there are three main ways to pay for anything included in a sales transaction example of a sale