Physical delivery, or physical delivery contracts, are agreements where the buyer is obligated to purchase, and the seller is obligated to deliver a tangible, material asset (such as currency, oil, gold, or agricultural products) at a specified price and within a set timeframe. Unlike cash-settled contracts, which are settled by paying a monetary difference, physical delivery contracts are fulfilled by transferring the asset or commodity. This type of contract is more commonly used when the parties are interested in obtaining or transferring the real asset, rather than merely speculating on its price.