fixed-price contract

fixed-price contract definition - business

fixed-price contract

An agreement for delivery of a good or service at a certain price, specified at the time the agreement is negotiated. The party that agrees to make delivery is subject to the risk that costs will be higher than anticipated at the time delivery is required.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.