Spot Contract
/ˈspɒt ˈkɒntrækt/
Definitions
- (n.) A contract for immediate delivery and payment of commodities or financial instruments, as opposed to futures contracts.
The parties agreed to a spot contract for the sale of 100 barrels of oil.
Forms
- spot contract
- spot contracts
Related terms
See also
Commentary
Spot contracts are characterized by prompt settlement, typically within two business days, differentiating them from forward or futures contracts which settle at a later date.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.