commutative contract
- A type of agreement in which the parties involved have obligations that are of equal worth or value
- 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.
- 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.
- The nature of a commutative contract ensures that neither party is disadvantaged as each party's obligation carries the same value.
Provide Feedback
