What is contracted price?

A contracted price is a mutually agreed upon value between two parties that outlines the cost of goods or services. The price is negotiated and agreed upon in advance, either for a one-time transaction or an ongoing contractual agreement. It is often used in business and commerce to provide a clear understanding of the costs associated with a particular product or service. Contracted prices can be fixed, meaning they remain the same over time, or they can be adjusted based on a variety of factors such as inflation, market demand, or changes in supply and demand. The specific terms and conditions of the contracted price are outlined in a written agreement, which both parties must abide by. Failure to comply with the agreement can result in legal consequences.