Contracts of exchange between municipalities and business enterprises

A contract of exchange entered into by a business enterprise and a municipality is an agreement under which various property or services may be exchanged.

Example

A municipality makes a building available to a business for a given time. In exchange, the business undertakes to give money or property or, as an alternative, to render services to the municipality.

Under such a contract, there are two supplies:

• A municipality supplies property or a service to a business.
• A business supplies property or a service to a municipality.

Each supply is also the consideration (or partial consideration) for the other supply:

• The supply of property or a service by the municipality is the consideration for the supply made by the business.
• The supply of property or a service by the business is the consideration for the supply made by the municipality.