CONTRACT PRICE Meaning and
Definition
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Contract price refers to the agreed-upon amount of money that the parties involved in a contract have negotiated and determined as the total cost for the goods or services to be exchanged. It is the specific amount of money that the buyer agrees to pay the seller, and the seller agrees to accept, as compensation for fulfilling their obligations under the contractual agreement.
The contract price serves as a fundamental element in any contractual arrangement, as it ensures that both parties understand the financial terms of their agreement. It outlines the exact amount that the buyer will pay and the seller will receive upon the completion of the contracted work, delivery of products, or provision of services.
The contract price is typically established by considering multiple factors, including the anticipated costs involved in fulfilling the contractual obligations, such as raw materials, labor, overhead expenses, and any other expenses directly related to the performance of the contract. Additionally, other considerations like market conditions, supply and demand dynamics, and any unique factors specific to the transaction may also influence the determination of the contract price.
Once the contract price is agreed upon and documented in the contract, it becomes legally binding for both parties. Any changes to the contract price, such as amendments or adjustments, must be mutually agreed upon and documented in writing to ensure clarity and avoid any disputes. Overall, the contract price is a vital component of a contract as it defines the financial obligations and expectations of both parties, contributing to the smooth execution of the contract.
Common Misspellings for CONTRACT PRICE
- xontract price
- vontract price
- fontract price
- dontract price
- cintract price
- ckntract price
- clntract price
- cpntract price
- c0ntract price
- c9ntract price
- cobtract price
- comtract price
- cojtract price
- cohtract price
- conrract price
- confract price
- congract price
- conyract price
- con6ract price
- con5ract price
Etymology of CONTRACT PRICE
The word "contract" originates from the Latin word "contractus", which means "drawn together" or "bound". It comes from the past participle of "contrahere", which is a combination of "con-" (together) and "trahere" (to draw or pull).
The word "price" comes from the Latin word "pretium", which means "value" or "price". It is derived from the Indo-European root word *per- (to traffic in, to sell).
When these two words are combined to form "contract price", it refers to the agreed-upon amount of money or consideration that parties involved in a contract have decided to exchange for the goods or services outlined in that contract.
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