Agreement by virtue of resulting out of commercial relationship can be regarded as child of commerce or commercial transactions. An agreement in contract law can be defined as an acceptance of an offer. Agreements which generally cause an adverse effect or distort or restrict competition are known as anti-competitive agreements. Section 3 of the Competition Act, 2002 defines anti-competitive agreements as any agreements in respect to production, supply, distribution, storage, acquisition and control of goods or provision of services that causes an appreciable adverse effect on competition in India. Adverse effect on competition refers not to a particular list of agreements, but to particular economic consequences which may be produced by quite different sorts of agreements in varying time and circumstances. It generally refers to any action which operates to the prejudice of the public interests by unduly restricting competition or unduly obstructing due course of trade.