Which type of purchase contract outlines specific prices for designated items?

A price contract is a type of purchase agreement that specifies exact prices for designated items. This contract establishes a clear expectation regarding the costs involved, allowing both the buyer and seller to agree on fixed prices for certain products or services over a defined period or for a specific project.

By detailing specific prices, this type of contract helps in budgeting and financial planning, ensuring that both parties understand the financial commitments from the outset. Additionally, price contracts can reduce the risk of price fluctuations, providing stability for the buyer when sourcing materials or goods.

Other types of contracts, such as a fixed warranty contract or a general contractor agreement, do not specifically outline prices for items in the same way. A supply contract may involve agreements on quantity and delivery schedules but may not necessarily fix prices for designated items across the board. The clarity and assurance provided by a price contract make it a preferred choice when exact pricing is crucial for both parties involved.