In a fixed-price category of contract, the seller assumes a large portion of the risk.

Question

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In a fixed-price category of contract, the seller bears the risk for meeting the agreed-upon terms and delivering the product or service within the specified time and budget, even if unexpected costs or changes in scope arise. The seller must absorb any losses resulting from cost overruns or delays and ensure that the buyer receives the desired outcome. Therefore, the seller assumes a large portion of the risk in a fixed-price contract.

In a Fixed-Price Category of Contract, the Seller Assumes a Large