A definitive agreement is a legally binding contract that outlines all the terms and conditions between two or more parties. It provides a clear, detailed and comprehensive understanding of what each party must do to fulfill their obligations under the agreement. This type of agreement is often used in business transactions such as mergers, acquisitions, joint ventures, and other complex deals where there are multiple issues that need to be addressed before the parties can proceed with the transaction. The definitive agreement spells out all the key details including price, payment terms, closing conditions, representations and warranties, indemnification provisions, and any other relevant clauses. Once both sides have signed the document, it becomes a legal contract that sets forth their rights and obligations under the deal.