Pricing Terms Clause (Consumer Price Index)

Summary

This pricing terms clause allows for adjustments in the purchase price of a commercial transaction based on increases or decreases in the Consumer Price Index. This clause includes practical guidance and drafting notes. A pricing term clause tied to the Consumer Price Index should be considered for any agreement providing for an on-going supply of goods over a period of more than one year. The Consumer Price Index is only one of several measures of inflation. Where an agreement is to contain a price adjustment clause tied to an inflation rate, the parties should ensure that the index selected is the one most appropriate to the agreement. For related clauses, see Pricing/Fees Clause, Pricing Terms Clause (Sale of Goods) (Pro-Buyer), Pricing Terms Clause (Sale of Goods) (Pro-Seller), Pricing Terms Clause (Services) (Pro-Customer), Pricing Terms Clause (Services) (Pro-Service Provider) and Pricing Terms Clause (Services) (Pass-Through Expenses). For other related payment and pricing ...