Definition of Commutative Contract

A commutative contract is a type of contract where each contracting party gives and receives an equivalent or something considered the mutual exchange of relative values. In this contract, the prestation or promise of a thing or service by one party is understood to be the cause for the prestation or promise by the other party.

Example

A contract of sale is an example of a commutative contract. The seller delivers the thing, and the buyer pays the price, with each giving and receiving something in exchange.