Rebate Legal Meaning and Definition

Here is a simplified definition of the legal term Rebate.

Rebate (noun)

A rebate is a discount or reduction in the price of an item or service that the seller offers to the buyer. This means the buyer pays less than the original selling price. Although the seller makes less profit on the item, they might offer a rebate to encourage sales or for promotional reasons. A rebate doesn't technically lower the item's selling price, since the buyer initially pays full price and then receives the discount afterward, usually in the form of cash or a check.