Counterpurchase

AAA

DEFINITION of 'Counterpurchase'

An exchange of goods between two parties that, by means of two contracts, agree to act as purchaser and supplier to each other and to purchase all goods in cash.

INVESTOPEDIA EXPLAINS 'Counterpurchase'

The first contract is the original sales contract, outlining the terms in which an initial buyer purchases from an initial seller. The second contract, a parallel contract, outlines the terms in which the original seller agrees to buy unrelated goods from the original buyer. Basically this is a contractually enforced relationship between two parties who agree, at some point, to provide business for one another.

RELATED TERMS
  1. Assignable Contract

    A futures contract with a provision permitting the contract holder ...
  2. Hell or High Water Contract

    A non-cancelable contract whereby the purchaser must make the ...
  3. Tender

    To invite bids for a project, or to accept a formal offer such ...
  4. Purchasing Power

    1. The value of a currency expressed in terms of the amount of ...
  5. Countertrade

    International trade in which goods are exchanged for other goods, ...
  6. Onerous Contract

    A type of contract where the costs involved with fulfilling the ...
Related Articles
  1. Deal Effectively With Difficult Clients
    Brokers

    Deal Effectively With Difficult Clients

  2. Master The Art Of Negotiation
    Personal Finance

    Master The Art Of Negotiation

  3. Moral Hazards: A Bump In The Contract ...
    Options & Futures

    Moral Hazards: A Bump In The Contract ...

  4. Finding Per Diem Rates
    Budgeting

    Finding Per Diem Rates

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center