A software license agreement is a legal contract between the purchaser of the software and the seller/licensor. Its primary use is to make the purchaser aware of its benefits and how and where it can be availed. It gives the purchaser a briefing of where, how, and the number of times it can be installed. It also protects the rights of both the licencor and the purchaser.
It is a full package of everything the purchaser needs to know about the software- ranging from its pricing details to the knowledge of the purchaser to be able to copy, change or redistribute it. It also includes all the restrictions on the use of the software.
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