Vertical Agreement
/ˈvɜːrtɪkəl əˈɡriːmənt/
Definitions
- (n.) An arrangement between businesses at different levels of the supply chain regulating the conditions under which goods or services are sold or purchased.
The company entered into a vertical agreement with its suppliers to control the distribution network.
- (n.) A type of contract subject to antitrust scrutiny because it may restrict competition by controlling resale prices, territorial restrictions, or customer allocations.
The court examined the vertical agreement for potential violations of antitrust laws.
Forms
- vertical agreement
- vertical agreements
Related terms
See also
Commentary
Vertical agreements often require careful drafting to comply with competition law, balancing commercial control with antitrust risk.
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.