affiliates
Definition
Affiliates are companies or people that have a close connection to your business, usually because one owns or controls part of the other. Think of it as a family tree of businesses where a parent company, its subsidiaries, and any sister companies all count as affiliates of each other.
Example
If you sign a contract that says your pricing applies to your company but not its affiliates, and you later spin off a second business under the same ownership, that second business might not get the same deal.
Watch Out
Contracts often give affiliates the same rights and responsibilities as the main company, so always check whether you are comfortable extending any agreement to every business connected to the other party.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.