Price Adjustment Clauses

Price adjustment clauses are contractual provisions that allow the prices of goods or services to be adjusted based on certain conditions or changes in factors like market conditions, inflation, or cost of materials. These clauses help protect both buyers and sellers by ensuring that the agreed-upon price remains fair and reflects current economic conditions. For example, if a supplier faces increased costs, a price adjustment clause might allow them to raise prices accordingly, thereby maintaining their profit margins while also keeping the buyer informed of potential changes.