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A. "A business deal with Michael would be beneficial to Peter."

B. "Peter agreed on a business deal with Michael."

The correctness of A leads to some confusion about B. From A, I could see that "a business deal with Michael" is a valid noun phrase, where "with Michael" modifies "a business deal".

In B, does "with Michael" modifies "business deal" or "agreed"? B has two slightly different intepretations:

B1. Peter and Michael agreed on (signed) a business deal.

B2. A business deal that involved Michael was agreed on (signed) by Peter.

What should I do?
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Hi,

A. "A business deal with Michael would be beneficial to Peter."

B. "Peter agreed on a business deal with Michael."

The correctness of A leads to some confusion about B. From A, I could see that "a business deal with Michael" is a valid noun phrase, where "with Michael" modifies "a business deal".

In B, does "with Michael" modifies "business deal" or "agreed"? B has two slightly different intepretations:

B1. Peter and Michael agreed on (signed) a business deal. .

B2. A business deal that involved Michael was agreed on (signed) by Peter.

What should I do? Realize that the context will normally make the intended meaning clear.

Clive
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The "X agreed on/to a deal/contract with Y" pattern seems to be common:

"In May, the United States announced that it was rewriting its trade rules to remove gambling services from the jurisdiction of the WTO. Washington has already agreed on deals with the European Union, Canada and Japan to change the treaty but it has yet to reach agreements with a number of other nations, including Antigua."

"Traditionally, the city has agreed on a contract with a lead union, setting a precedent for raises for other unions. The uniformed unions usually held out for a bit more. Contracts ran two or three years, giving budgetary stability. When they expired, the cycle began anew."

"Arms sales to Taiwan, which China calls a breakaway province that must be reclaimed by force if needed, are perhaps the biggest obstacle to better relations between the two forces. The People’s Liberation Army suspended some exchanges in September, after the United States agreed to the arms deal with Taiwan. But the American deal — to upgrade Taiwan’s fleet of F-16s rather than sell the country 66 new-generation models of the jets — appeared calibrated to try to avert deepening strains with China."
Hi,

As I said, the intended meaning seems clear.

Clive