Which of the following best explains 'Price change clause'?

Question

Quizplus · Accepted Answer

A price change clause is a provision in a contract between a buyer and a seller that allows the adjustment of the contract price based on changes in specific market conditions, such as raw material costs or inflation. The clause usually references a specific index or measure that reflects the changes in these conditions, which may be agreed upon by both parties. Option C states that the clause uses an index that is agreed between the buyer and seller, making it the best choice.

Which of the Following Best Explains 'Price Change Clause