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 counterpurchase (also know as a parallel barter or parallel trading) is a transaction in which each delivery is paid for in cash. In most counterpurchase transactions, two separate contracts are signed, one in which the supplier sells products for a cash settlement (the original sales contract), the other in which the supplier agrees to purchase and market unrelated products from the buyer (a separate, parallel contract).
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.
Underdelivery refers to the delivery of fewer impressions, visitors, or conversions than contracted for a specified period of time.
See Also
References
- American Marketing Association, AMA Dictionary.