Agreed rate – Definition & Meaning

Agreed rate is a term that is commonly used in the business world. It refers to a pre-arranged or predetermined rate or price that is agreed upon between two parties. This rate can be for goods, services, or any other type of transaction. In this article, we will explore the definition and meaning of agreed rate in detail.

Definitions

An agreed rate is a fixed rate or price that is agreed upon by two parties before a transaction takes place. This rate can be for goods, services, or any other type of transaction. The agreed rate is usually set in advance and is binding on both parties.

Origin

The origin of the term agreed rate can be traced back to the early days of commerce and trade. In those days, merchants would negotiate the price of goods and services with their customers. Over time, as trade became more complex, it became necessary to have a set rate or price that was agreed upon in advance.

Meaning in different dictionaries

According to the Merriam-Webster dictionary, the agreed rate is defined as “a rate or price that has been agreed upon in advance.” The Oxford English Dictionary defines it as “a pre-arranged or predetermined rate or price that is agreed upon between two parties.”

Associations

Agreed rates are commonly used in the business world for a wide range of transactions. They are often used in contracts, lease agreements, and other legal documents. Agreed rates can also be used in the context of employment, where an employer and employee agree on a specific rate of pay.

Synonyms

Some synonyms for agreed rate include fixed rate, predetermined rate, pre-arranged rate, and set rate.

Antonyms

Some antonyms for agreed rate include variable rate, fluctuating rate, and negotiable rate.

The same root words

The root words of agreed rate are “agreed” and “rate.” Agreed means to have come to a mutual understanding or consensus, while rate refers to a fixed price or charge.

Example Sentences

Here are some example sentences that use the term agreed rate:

  • The agreed rate for the services rendered was $50 per hour.
  • The landlord and tenant agreed on a fixed rate for the rent.
  • The company and the supplier agreed on an agreed rate for the delivery of goods.
  • The employee and employer agreed on a specific rate of pay for the job.
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