Price Adjustment

Price Adjustment is a common clause in foreign trade contracts, referring to the act of both buyer and seller negotiating to modify the originally agreed price during contract performance due to changes in objective factors such as market conditions, exchange rates, raw material costs, policies and regulations. Usage scenarios include: long-term supply contracts, bulk commodity transactions, periods of severe exchange rate fluctuations, significant rises or falls in raw material prices, etc. Precautions: 1. The contract should clearly specify the trigger conditions, adjustment range, and calculation method for price adjustment to avoid disputes; 2. Adjustments require written confirmation from both parties; unilateral changes are not permitted; 3. If a letter of credit is involved, the L/C amount must be amended after adjustment; 4. Note the difference from 'Price Correction,' which usually refers to correcting an erroneous quotation rather than a change caused by market factors. Unlike 'Discount,' price adjustment is bidirectional and may be either upward or downward.