Supply Chain Glossary

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Agreement


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

The word agreement can have both informal and formal meanings.  Informally the word may be used to describe a contractual agreement between parties: ‘the agreement has three months to run’.  The formal meaning of the word is used in a legal context to describe one of the prerequisites for considering a contract valid.  The parties must have ‘a meeting of the minds’, sometimes called ‘consensus ad idem’, meaning that for a contract to exist the parties must share a common understanding, and there must be no mistake as to what is being agreed.  See also Contract.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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