Redetermination Method Clause Samples
The Redetermination Method clause establishes a process for periodically reviewing and adjusting certain contract terms, typically related to pricing or compensation, based on predefined criteria or changes in circumstances. This method may involve recalculating rates or fees according to market indices, cost changes, or other agreed-upon benchmarks at specified intervals. Its core practical function is to ensure that contract terms remain fair and reflective of current conditions, thereby reducing the risk of disputes and maintaining the economic balance between the parties.
Redetermination Method. The State will redetermine the stumpage payment based on the existing conditions at the time that the redetermination occurs. Redetermination will not change the meaning or intent of the contract. The STATE and PURCHASER will negotiate to an agreement of redetermined payment in good faith. In the event that PURCHASER and the STATE cannot agree on the redetermined rates, the existing contract will govern all actions.