Definition
A contract is an agreement between two or more persons that creates an obligation to do or not to do a particular thing. Its essentials are competent parties, subject matter, legal consideration, mutuality of agreement, and mutuality of obligation.
A tying arrangement or tie-in contract exists when a person agrees to sell one product, the tying product, only on the condition that the vendee also purchase another product, the tied product. This practice is generally illegal under the Sherman Antitrust Act or Clayton Act.
References
- ^ American Marketing Association, AMA Dictionary.