Price Adjustment Provision
/ˈpraɪs əˈdʒʌstmənt prəˈvɪʒən/
Definitions
- (n.) A contractual clause allowing for modification of the agreed price based on specified conditions such as market fluctuations, cost changes, or performance metrics.
The contract included a price adjustment provision to account for changes in material costs.
Forms
- price adjustment provision
- price adjustment provisions
Related terms
See also
Commentary
Typically used to manage risk and fairness in long-term contracts by allowing price reevaluation under predefined terms.
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.