For promises to be enforceable as a contract, each party to a contract must provide ‘consideration’, unless the agreement is a deed. In procurement, the buyer usually agrees to pay a sum of money – the price – in return for the supplier promising to perform the contract. The mutual exchange of benefits between the parties is one test to establish the existence of a legally binding contract. See also Contract, Bilateral.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.