Dictionary of Procurement Terms

Hypothecate: A finance, banking, and accounting reference to the use of property as collateral for a loan.

An act in statistics whereby an analyst tests a statistical study data sample to determine if it is consistent with or deviates from known factors of a sample population.

A tangential flaw having no material body or form that may be corrected without prejudice to other bidders (e.g., the submission of two copies of a catalog when three copies were requested).

A condition that exists when the marketplace is dominated by only one or possibly a few sellers. This is referred to as an oligopoly.

A warranty that applies to an instance in which the seller—at the time of contract—has reason to believe that the buyer wants the goods for a particular purpose, and the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods.