Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves

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This is an example of negotiated contract buying, as the price was negotiated between Rico Paving Contractors and Valley Supply. The condition that allows for prices to be revised if costs go up more than $1 per bag also indicates that there was some bargaining between the two parties.

Rico Paving Contractors Enters into a Contract with Valley Supply