In a Fixed Price Contract with Escalation,all Contractual Price Changes

question 67

True/False

In a fixed price contract with escalation,all contractual price changes should be keyed to a third-party price index,preferably to a well-established,widely published index.

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money either on demand or at a set time, with the payer named on the document.

Agreed

The state of mutual consent or acknowledgement about terms, conditions, or proceedings by all parties involved.

Acceptor

In financial transactions, particularly in negotiable instruments, the party who agrees to pay a bill of exchange.

Unconditional Promise

A commitment or guarantee without any stipulations or requirements, fully binding upon the issuer.