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tie-in contract

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tie-in contract

A contract in which a vendor conditions the sale of a desirable product on the purchaser's willingness to also buy a less desirable product.The products are said to be tied to each other.The definition includes lenders,who might express a willingness to loan money for a development project at very attractive interest rates and terms, but only if the developer will purchase a piece of foreclosed real estate in the lender's inventory.The slang expression for this practice is called trash for cash.It is illegal under banking regulations and under the Sherman Antitrust Act.



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