Trading Partner Agreement

Posted in Finance, Accounting and Economics Terms, Total Reads: 170

Definition: Trading Partner Agreement

Trading Partner agreement is defined as the agreement drawn between two parties post discussion and negotiation. It may be related to trade of goods, services or information. It is used for electronic transactions. The agreement is a document that consists of a detailed outline of terms and conditions that governs the trade.


What does it consist of

Trading partner agreement typically consists of the role of each party in the trade. It also shares the follows:

1. Share of each party in trade

2. Terms of delivery of goods

3. Terms of receipt of goods

4. Duties and responsibilities of each party during the trade 



Trading Partner Agreement is a very useful document. It is actually critical sometimes to a business. It helps to resolve any future conflict between the parties as they mutually agree to it before entering into an alliance.



A TPA includes the follows:

1. A cover letter

2. A template

3. Examples from various sources


A template is a descriptor document that outlines the rules of the trade. It also consists of signatures of both parties. It also specifies the security level, any considerations etc.



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