The modification adds distinct goods or services to the agreement and the increase in the contract price reflects the stand-alone selling price of the additional goods and services.
The cost of the products or services promised in the contract is the contract price. The agreed upon price aids in establishing the potential existence of a contract. If the contract price is not specified in writing, the court may rule in a legal dispute that there was no contract.
This phrase is frequently employed in tax law to determine how much gain was achieved from an installment sale. This is the selling price less any mortgage debt that the buyer absorbs, any liens that were obtained for the seller's equity, and any other debts. The phrase "contract price" can also refer to a contract amount.
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