Free Price Agreement

This Price Agreement ("Agreement") is made and entered into as of [Date], by and between [Your Company Name], having its principal place of business at [Your Company Address] ("Seller/Service Provider"), and [Counterparty Company Name], having its principal place of business at [Counterparty Company Address] ("Buyer").

1. Purpose

The Agreement serves to outline the mutual covenants between the Parties regarding the pricing of goods or services provided by Seller/Service Provider to Buyer. It encompasses agreements on pricing, payment terms, discounts, taxation, and termination policies, ensuring a comprehensive framework for their business relationship. By defining these terms clearly, both Parties can mitigate the risk of misunderstandings and disputes.

2. Scope of Agreement

This Agreement establishes its governance over all transactions concerning the pricing and provision of goods or services between the Parties. It provides a structured framework within which all trade activities, negotiations, and contractual obligations related to the specified goods or services shall be conducted. By clearly delineating the scope, the Agreement ensures consistency and clarity in the Parties' dealings.

3. Pricing and Payment Terms

3.1. The agreed price for the goods or services provided by Seller/Service Provider is set at [Enter exact Price]. This price is carefully negotiated to reflect the value of the goods or services exchanged and may include considerations such as production costs, market demand, and competitive pricing analysis. By establishing clear pricing terms, both Parties can ensure transparency and fairness in their financial transactions.

3.2. Buyer agrees to adhere to our payment terms, which shall be [Specify terms, e.g., "net 30 days from the date of invoice"]. These payment terms are designed to facilitate smooth financial transactions and maintain positive cash flow for the Seller/Service Provider. By specifying payment terms upfront, both Parties can avoid payment delays and associated disruptions to their business operations.

4. Discounts

4.1. Parties may agree to discounts based on [Specify criteria, e.g., "volume of purchases" or "early payment"]. These discounts are offered as incentives to encourage certain behaviors or reward loyal customers. By clearly defining the criteria for discounts, both Parties can ensure that they are applied consistently and fairly.

4.2. Buyer shall apply any discounts by the terms specified in the agreement and with full acknowledgment of Seller/Service Provider. This ensures that discounts are applied correctly and by the agreed-upon terms, preventing misunderstandings or disputes regarding pricing adjustments.

5. Taxes

The prices specified in this Agreement are exclusive of any applicable taxes. Buyer shall bear any sales, use, or other similar taxes imposed under the jurisdiction on the goods or services provided under this Agreement. It is important to note that tax obligations may vary depending on the jurisdiction and nature of the transaction, and both Parties must adhere to applicable tax laws and regulations.

6. Term and Termination

6.1. This Agreement commences on [Effective Date] and continues until either Party chooses to terminate it. The Agreement provides a clear timeframe for the contractual relationship between the Parties, allowing for effective planning and management of their business activities.

6.2. Upon termination, the Buyer is responsible for paying all outstanding payments to the Seller/Service Provider. This ensures that any financial obligations incurred during the term of the Agreement are settled promptly, facilitating a smooth transition out of the contractual relationship.

7. Amendment

Any amendment or modification to this Agreement must be made in writing and requires full approval and signature from all Parties involved in this Agreement. This provision ensures that any changes to the Agreement are documented and agreed upon by all Parties, maintaining the integrity and enforceability of the contractual terms.

8. Governing Law

This Agreement and the rights of the Parties are governed and interpreted by the laws of [Specify jurisdiction]. By specifying the governing law, the Agreement provides clarity on the legal framework within which any disputes or legal proceedings arising from the Agreement will be resolved, minimizing uncertainty and potential conflicts.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

[Counterparty Representative Name]

[Counterparty Company Name]

[Your Name]

[Your Company Name]

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