Meet-or-release contracts are
contracts
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...
that include "meet or release"
competition clause
In language, a clause is a constituent that comprises a semantic predicand (expressed or not) and a semantic predicate. A typical clause consists of a subject and a syntactic predicate, the latter typically a verb phrase composed of a verb with ...
s. It is where a company agrees with a
ustomerto sell a product at a certain given price. If, by any chance the customer finds a cheaper purchase the company must place their product at an equal or lesser value. The customer then has the option to be released from the contract only after giving the original company the opportunity to meet (or exceed) the less expensive offer. In some circumstances, exercising this clause's options may not be possible because the
ustomerwould have to disclose a
ompetitor'sconfidential offer in order to allow another company the opportunity to match the offer.
References
Contract clauses
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