Legal Term
Mid-Contract Price Increase
Legal Definition
A mid-contract price increase occurs when a vendor or contractor attempts to raise the agreed-upon price after a contract is signed, without a prior amendment. This is generally unenforceable unless the contract explicitly allows it via a price escalation clause, mutual agreement, or in rare cases, due to extraordinary events like force majeure that fundamentally alter performance obligations.
In Plain English
When your contractor tries to charge more money halfway through the job. Usually, they can't do that unless the contract says they can.
Example in a Contract
Section 8. Price Adjustments. Vendor may adjust the fees set forth in Schedule A by providing Client with sixty (60) days' prior written notice if (a) there is a change in applicable laws or regulations that increases Vendor's costs, or (b) a Force Majeure event as defined in Section 15 occurs and directly impacts Vendor's performance costs. Any such adjustment shall be proportionate to the increased costs documented by Vendor.
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