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A rebate agreement represents a contract between two business partners, defining the terms and conditions of a discount that is paid after the purchase of a product. For example, you can define the rebate recipient, the rebate value, and the criteria on which the rebate is based.

For example, a rebate agreement states if a customer purchases 1,000 units of product, then they can claim a 5% rebate. Each unit is $100, so if the buyer purchases 1,000 units, the buyer can claim a rebate reward of $5,000.

A rebate is a form of cash back against the purchase of the goods given to the buyer by the manufacturer or the seller of that respective goods after they sell them.

What are the Types of Rebates? Volume Incentive Rebate. One of the most common types of rebates is a volume incentive rebate. Value Incentive Rebate. Product Mix Incentive Rebate.

A rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales.