commutative contract

Definition of "commutative contract"
  1. A type of agreement in which the parties involved have obligations that are of equal worth or value
How to use "commutative contract" in a sentence
  1. A purchase agreement is a typical example of a commutative contract where both parties have responsibilities of equal value - one to provide the good and the other to pay for it.
  2. In a commutative contract, the obligation of tenant to pay rent is equal in value to the landlord's obligation to provide a habitable property.
  3. The nature of a commutative contract ensures that neither party is disadvantaged as each party's obligation carries the same value.

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