Price Adjustment Clause
/ˈpraɪs əˌʤʌstmənt klɔːz/
Definitions
- (n.) A contract provision allowing adjustment of the contract price based on specified criteria such as cost fluctuations, inflation, or changes in market conditions.
The price adjustment clause enabled the contractor to alter the payment if material costs rose unexpectedly.
Forms
- price adjustment clause
- price adjustment clauses
Related terms
See also
Commentary
Often used to allocate risk of price volatility between contracting parties; drafters should clearly specify adjustment triggers and methods to avoid disputes.
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.