Subsequent Years’ Pricing Clause Samples

The "Subsequent Years’ Pricing" clause defines how the prices for goods or services will be determined after the initial contract period. Typically, this clause outlines whether prices will remain fixed, be subject to renegotiation, or adjust according to a specific formula or index in future contract years. For example, it may specify annual price increases based on inflation rates or mutual agreement. Its core function is to provide predictability and transparency for both parties regarding future costs, thereby reducing the risk of disputes over pricing as the contract continues.