Defination & Types:
A commercial contract is a type of contract that defines the terms of a commercial transaction. There are several types of commercial contracts.
A commercial contract is a type of contract that defines the terms of a commercial transaction. There are several types of commercial contracts.
1. Fixed Price Contracts:
If Parties Fail to Perform:
Firm fixed price contract, or FFP contract, establishes the cost of a service before the service is rendered, and it does not change if the service costs more than anticipated. A fixed price contract gives the contractor a maximum price and a target price
2.Time and Materials Contracts:
A time and materials contract determines the cost of services based on fixed wages and materials costs. With this type of contract, laborers are given specific hourly pay rates, and materials are paid for based on their cost with no contractor fee.
If Parties Fail to Perform:
If a party in a contract fails to live up to their part of the contract, the justice system steps in to fix the problem. Generally, a court either enforces the contract or asks the offending party to compensate for harm done.
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