Drafting and negotiating a price clause—checklist


Published by a ³ÉÈËÓ°Òô Commercial expert
Checklists

Drafting and negotiating a price clause—checklist


Published by a ³ÉÈËÓ°Òô Commercial expert

Checklists
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This Checklist outlines key provisions and issues for consideration when drafting and negotiating a price clause in a business to business contract.

For a Precedent price clause together with detailed drafting notes, see Precedent: Template agreement—mutual.

For a price variation clause, see Precedent: Price variation clauses.

For a payment by letter of credit clause, see Precedent: Payment by letter of credit clause.

For information on price clauses, see Practice Note: Price, payment terms and interest.

Payment and price provisions in a contract are often interlinked. When using this checklist, also consider using: Drafting and negotiating a payment clause—checklist.

Legal IssuesGeneral commentsWhat to watch out for
Basis of calculation: time and materials or fixed priceWhere fixed prices are used, these are commonly expressed by reference to a schedule (see for example Precedent: Template agreement—mutual at clause 6).

Prices can be calculated on a 'time and materials' basis, on a fixed price or a combination of both, ie some agreements can be based on a mix of pricing methods: time and materials up to a threshold, or staged
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Jurisdiction(s):
United Kingdom
Related legal acts:

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