CONTRACT RATE Meaning and
Definition
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A contract rate refers to the agreed-upon price or fee that is established between two parties in a contractual agreement. It is a predetermined rate that is negotiated and written into the terms of a contract, specifying the amount of compensation that one party will pay or receive for goods, services, or a particular agreement.
Contract rates are commonly used in various industries and sectors. For instance, in the transportation industry, contract rates are established between shippers and carriers to determine the price for the transportation of goods from one location to another. In the construction industry, contract rates are often used to determine the amount a contractor will be paid for completing a specific project.
The contract rate can be a fixed amount, typically expressed as a specific currency value, or it can be based on various variables, such as the number of units supplied or hours worked. These rates are generally set for a specific period or duration as outlined in the contract.
Contract rates are essential in providing clarity and certainty to both parties involved. They eliminate any ambiguity regarding the agreed-upon compensation, ensuring that expectations are met and obligations fulfilled. By establishing contract rates, parties can avoid potential disputes and conflicts that may arise due to misunderstandings about compensation.
Common Misspellings for CONTRACT RATE
- xontract rate
- vontract rate
- fontract rate
- dontract rate
- cintract rate
- ckntract rate
- clntract rate
- cpntract rate
- c0ntract rate
- c9ntract rate
- cobtract rate
- comtract rate
- cojtract rate
- cohtract rate
- conrract rate
- confract rate
- congract rate
- conyract rate
- con6ract rate
- con5ract rate
Etymology of CONTRACT RATE
The word "contract" comes from the Latin word "contractus", which means "drawn together" or "bound". It is derived from the past participle of "contrahere", which is a combination of "con-" (meaning "together") and "trahere" (meaning "to draw" or "to pull").
The word "rate" comes from the Latin word "rata", which means "reckoned" or "accounted for". It originates from the past participle of the verb "reri", meaning "to reckon" or "to consider".
In the context of "contract rate", the term is used to refer to an agreed-upon rate or price for a particular service or project under a contract. The etymology of the word indicates a binding agreement or arrangement that has been calculated or accounted for, leading to the concept of a contract rate.
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