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sweetheart contract

   Also found in: Wikipedia 0.02 sec.
sweetheart contract

A contract entered into by related parties who do not negotiate aggressively for the best terms and conditions and which usually has the effect of costing a third party more money than would otherwise be necessary under the circumstances.At one time it was common for developers to retain title to recreational amenities in a subdivision or condo project and charge high rents for their usage.This has largely been regulated out of existence,but such sweetheart contracts always seems to arise in some other guise.



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