APUC Sample Clauses

The APUC (Average Price Unit Cost) clause establishes a method for determining the price of goods or services based on the average unit cost over a specified period or quantity. In practice, this means that instead of a fixed price per unit, the cost is calculated by averaging the total cost of all units supplied, which can be particularly useful in contracts involving fluctuating market prices or bulk purchases. This clause helps ensure that both parties share the risk of price volatility and provides a fair and transparent pricing mechanism, thereby reducing disputes over cost adjustments during the contract term.