How To Determine The Price Of The Contract

Table of contents:

How To Determine The Price Of The Contract
How To Determine The Price Of The Contract

Video: How To Determine The Price Of The Contract

Video: How To Determine The Price Of The Contract
Video: FRM: Determination of Forward & Futures Prices Part I (of 2) 2024, March
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Agreement - a document in which the parties to the transaction indicate all the essential conditions under which the transaction will take place, that is, how, when, how, in what time frame the parties will perform certain actions, and what will be the remuneration for them. Determining the price of a contract is not always easy, so you should know what it is, what it consists of and how it is regulated.

How to determine the price of the contract
How to determine the price of the contract

Instructions

Step 1

The contract price is cash or other material values that one party to the contract will receive from the other for the proper performance of contractual obligations. If the price does not suit one of the parties to the contract, the contract in certain cases may be considered non-concluded. To clarify the price of the contract, additional documents may be drawn up (estimate, protocol of agreement of the contract price, etc.).

Step 2

The contract price is determined on the basis of the cost of goods and services, transportation costs, consumables, through the mediation, it will depend on the manufacturer's prices, and so on. The contract price must take into account all significant factors and suit both parties to the contract (or all parties to the contract, if there are more than two).

Step 3

In certain cases, prices (prices, tariffs, rates) can be set and regulated by government agencies that have the authority to do so. State bodies can set their prices only in cases provided by law.

Step 4

The price of the contract can be clearly indicated in the paragraph "Price of the contract", or it can be drawn up as an annex to the contract in the form of calculation, indicated in the specification, tariffs, and so on. If the price is not specified in the contract, it can be determined based on the terms of the contract and market prices established for the same or similar goods, works and services, that is, the prices that could be established under comparable circumstances are taken as the basis.

Step 5

The contract price can be exact and fixed, predetermined and agreed upon by the parties to the contract. Also, the price of the contract can be determined only approximately and require clarification at the time of fulfillment of obligations (for example, at the time of delivery of products or performance of any stage of work).

Step 6

The price can be set in the national currency (rubles) or the currency of other states, or it can be paid in rubles, but as an equivalent of certain conventional monetary units.

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