Quid Pro Quo

A legal term, quid pro quo means ‘something for something’, or an exchange of benefits. One of the prerequisites for the creation of a contract is consideration, which is the exchange of something of value for something else of value. In most procurement situations, the supplier exchanges their services or goods for a sum of money, and the exchange of value fulfils the requirements for a bilateral contract. When bargaining, the exchange of two different negotiable variables is described as ‘knock-for-knock’ or quid pro quo. See also Consideration and Contract, Bilateral.