Quid pro quo is a Latin term that translates to “something for something.” In legal and ethical contexts, it refers to the exchange of goods, services, favours, or benefits, where one party provides something of value to another party in return for something of value in exchange. Quid pro quo arrangements can be explicit or implicit and may involve various types of transactions or agreements. In some cases, quid pro quo arrangements may be lawful and ethical, such as in business negotiations or contractual agreements. However, they can also raise ethical concerns, particularly if they involve bribery, coercion, or the exchange of favours for improper purposes. Quid pro quo is often scrutinised in legal and regulatory contexts to ensure fairness, transparency, and compliance with applicable laws and ethical standards.
(kwid proh kwoh) n. Latin for “something for something,” to identify what each party to an agreement expects from the other, sometimes called mutual consideration.
Example of its use: “What is the quid pro quo for my entering into this deal?
The term quid pro quo derives from Latin and literally means “something for something.”. Today, the expression quid pro quo is used to denote a bargaining arrangement in which one party offers a product or service in exchange for something else of value. Much like in other professional domains, in the world of finance, acts of quid pro quo are quite common. Thus, quid pro quo may apply to various business deals, such as mergers and acquisitions, as well as various joint ventures. Quid pro quo may also describe mutually beneficial trade agreements and other distributive deals.
However, quid pro quo may also have negative connotations. Sometimes a quid pro quo pact may be at the core of a conflict of interests and lead to a corporate transgression. One example of negative quid pro quo would be a situation in which a brokerage firm issues a buy recommendation for a company regardless of its objective merits in exchange for that company’s business.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April, 2024.
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