Gross Margin
/ˈɡroʊs ˈmɑrdʒɪn/
Definitions
- (n.) The difference between a company's revenue and its cost of goods sold, expressed as a percentage of revenue, reflecting profitability before indirect expenses.
The contract specified that disputes over gross margin calculations would be resolved by arbitration.
Forms
- gross margins
Related terms
See also
Commentary
Gross margin is often crucial in contractual definitions regarding pricing, royalties, or damages calculation, requiring precise definition to avoid ambiguity in legal agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.