Pricing Differentials Sample Clauses

The Pricing Differentials clause defines how differences in prices are handled between parties in a contract. Typically, this clause outlines the method for calculating and adjusting payments if the agreed price for goods or services changes due to market fluctuations, regulatory changes, or other specified factors. For example, it may require one party to pay the other the difference if the market price rises or falls beyond a certain threshold. The core function of this clause is to allocate the risk of price changes fairly between the parties, ensuring that neither side is unduly disadvantaged by unforeseen shifts in pricing.