YOU ASK:
What is the definition of Commutative Contract?
WE ANSWER:
A Commutative Contract refers to an agreement where each party gives and receives something of the same value. Both parties give items or services in exchange for payment or corresponding items or services which they both think have the same value. This is true for most products sold.
For example, Johnny sells a car to Sam. They both agree on a price. Johnny signs over the ownership of the car to Sam when Sam pays for it. The contract of the sale is a commutative contract. This is different from an aleatory contract, where one party pays for a promise or a guarantee.
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