Adjustments clause: Copy, customize, and use instantly
Introduction
An adjustments clause in a contract allows for modifications to the terms of the agreement under specific circumstances. This clause is often used to accommodate changes in conditions such as market rates, costs, or unforeseen circumstances, ensuring that the contract remains fair and relevant as conditions evolve. It typically outlines the procedures for making adjustments and the criteria under which these adjustments may occur.
Below are templates for adjustments clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard adjustments clause
This version provides a general framework for adjustments.
In the event of unforeseen changes in [specific factor], [Party A] and [Party B] agree to adjust the terms of this Agreement to reflect such changes. Any such adjustments shall be made in good faith and in writing, and shall take effect on [effective date of adjustment].
Adjustments clause with provision for price adjustments
This version addresses price adjustments.
[Party A] reserves the right to adjust the prices specified in this Agreement to reflect changes in market conditions, including fluctuations in raw material costs, labor rates, or other external factors. Price adjustments will be made with [X] days' notice to [Party B].
Adjustments clause with provision for adjustments based on cost of living
This version ties adjustments to the cost of living.
The compensation specified in this Agreement shall be subject to annual adjustments based on changes in the [cost of living index]. Such adjustments shall be made each year on the anniversary of this Agreement.
Adjustments clause with provision for adjustments in response to regulatory changes
This version includes regulatory changes.
If there are changes in any applicable laws, regulations, or tax rates that affect the performance of this Agreement, the Parties agree to adjust the terms of this Agreement to comply with the new legal requirements.
Adjustments clause with provision for adjustments based on inflation
This version ties adjustments to inflation.
The Parties agree that the payments specified in this Agreement shall be adjusted annually based on the [Consumer Price Index] or another applicable inflation rate. Such adjustments will reflect the increase or decrease in inflation over the previous year and will take effect on [Date].
Adjustments clause with provision for adjustments due to changes in exchange rates
This version includes exchange rate changes.
If there is a fluctuation in the exchange rate between [Currency A] and [Currency B] by more than [X] percent from the rate at the time of signing, the Parties agree to adjust the monetary terms of this Agreement accordingly to reflect such changes.
Adjustments clause with provision for adjustments in response to increased operational costs
This version addresses operational cost increases.
In the event that operational costs increase by more than [X]% due to factors such as rising labor costs, raw materials, or energy prices, [Party A] may adjust the prices under this Agreement. The Parties shall agree to any such adjustments in writing.
Adjustments clause with provision for adjustments based on unforeseen circumstances
This version includes unforeseen circumstances.
The Parties agree that, in the event of unforeseen circumstances such as natural disasters, pandemics, or other force majeure events, the terms of this Agreement shall be adjusted to reflect the changed conditions, with both Parties agreeing in writing on the specific adjustments required.
Adjustments clause with provision for adjustments for changes in scope of work
This version addresses changes in scope.
If either Party requests a change in the scope of work or services outlined in this Agreement, the Parties agree to adjust the compensation and timeline in a manner that fairly reflects the new scope. Any such changes shall be agreed upon in writing before taking effect.
Adjustments clause with provision for adjustments based on performance metrics
This version includes performance metrics.
Adjustments to the fees or compensation under this Agreement may be made based on the performance of [specific service or deliverable], with the Parties agreeing to adjust payment based on the performance metrics established in [Exhibit A].
Adjustments clause with provision for adjustments related to market conditions
This version ties adjustments to market conditions.
The Parties agree that the terms of this Agreement, including pricing and delivery schedules, may be adjusted in response to significant changes in market conditions that impact the ability to perform. Any such adjustments shall be made in good faith and agreed upon by both Parties in writing.
Adjustments clause with provision for adjustments in case of government-imposed tariffs
This version addresses tariffs.
In the event that new government-imposed tariffs or trade restrictions affect the performance of this Agreement, the Parties agree to adjust the pricing and other terms to account for the increased costs resulting from such tariffs.
Adjustments clause with provision for automatic price adjustments
This version includes automatic price adjustments.
The price for goods and services under this Agreement shall be adjusted automatically on an annual basis, based on the [specified index, e.g., CPI, market rate], to reflect any changes in the cost of providing such goods and services.
Adjustments clause with provision for adjustments in case of unexpected legal fees
This version covers legal fees.
If either Party incurs unexpected legal costs or fees due to unforeseen litigation or regulatory requirements, the Parties agree to adjust the compensation to account for such unforeseen costs, with mutual written consent.
Adjustments clause with provision for adjustments for additional work
This version allows adjustments for additional work.
If additional work or services outside the scope of this Agreement are required, the Parties agree to adjust the compensation accordingly. Any adjustments will be based on the fair market value of the additional work and will require mutual written consent.
Adjustments clause with provision for adjustments in response to a change in the law
This version includes a change in the law.
In the event that there is a change in applicable law that directly affects the terms of this Agreement, the Parties agree to adjust the terms to ensure compliance with the new law, with any adjustments being made in writing.
Adjustments clause with provision for adjustments for changes in labor laws
This version addresses labor laws.
If there are any changes in labor laws that increase the cost of performing under this Agreement, the Parties agree to negotiate and adjust the terms to reflect the increased labor costs, with any such adjustments to be documented in writing.
Adjustments clause with provision for adjustments based on regulatory changes
This version addresses regulatory changes.
The Parties agree to adjust the terms of this Agreement, including but not limited to pricing, in the event that any regulatory changes impose additional requirements or costs, with such adjustments to be agreed upon by both Parties in writing.
Adjustments clause with provision for adjustments based on production delays
This version addresses production delays.
If production delays caused by [Party B] or their suppliers impact the timeline or cost of fulfilling the Agreement, the Parties agree to adjust the terms, including delivery schedules and pricing, to reflect the effects of these delays.
Adjustments clause with provision for adjustments based on technological advancements
This version includes technological advancements.
In the event of significant technological advancements that affect the delivery of [services or goods] under this Agreement, the Parties agree to adjust the terms, including timelines and compensation, to incorporate these advancements.
Adjustments clause with provision for adjustments due to changes in insurance premiums
This version covers insurance premiums.
If there is a significant change in the insurance premiums required for the performance of this Agreement, [Party A] may adjust the terms, including compensation, to reflect the increased insurance costs.
Adjustments clause with provision for adjustments due to unforeseen tax changes
This version includes tax changes.
In the event that there are significant, unforeseen changes to tax laws that affect the performance or costs under this Agreement, the Parties agree to adjust the pricing or terms to account for such tax changes.
Adjustments clause with provision for adjustments for performance failures
This version addresses performance failures.
If [Party B] fails to meet performance expectations or deliverables as set forth in this Agreement, [Party A] may request adjustments to the compensation or schedule to reflect the impact of such performance failures, with any changes being agreed upon in writing.
Adjustments clause with provision for adjustments based on quantity changes
This version addresses quantity changes.
The Parties agree to adjust the terms of this Agreement, including pricing and delivery schedules, if there is a significant increase or decrease in the quantity of goods or services required by [Party A], with such adjustments to be mutually agreed upon.
Adjustments clause with provision for adjustments due to supply chain disruptions
This version addresses supply chain disruptions.
If either Party experiences disruptions in their supply chain that affect their ability to fulfill their obligations under this Agreement, the Parties agree to adjust the delivery timelines and compensation in a manner that reflects the impact of such disruptions.
Adjustments clause with provision for adjustments in the event of force majeure
This version includes force majeure.
In the event of a force majeure event, including natural disasters, war, or other unforeseeable circumstances, the Parties agree to adjust the terms of this Agreement to reflect the effect of such events on the performance of this Agreement.
Adjustments clause with provision for changes in project scope
This version allows for project scope changes.
If the scope of the project outlined in this Agreement changes due to [Party A]’s request or other unforeseen factors, the Parties agree to adjust the project timeline and pricing based on the new scope, with all adjustments to be agreed upon in writing.
Adjustments clause with provision for adjustments based on new technological standards
This version includes new technological standards.
In the event that new technological standards or best practices emerge that affect the performance or delivery of goods or services under this Agreement, the Parties agree to adjust the terms to ensure compliance with such standards.
Adjustments clause with provision for adjustments in response to increased demand
This version addresses increased demand.
In the event that there is a significant increase in demand for the goods or services outlined in this Agreement, [Party A] may request adjustments to the delivery schedule or pricing, with such adjustments to be agreed upon in writing.
Adjustments clause with provision for adjustments in case of currency devaluation
This version addresses currency devaluation.
If the value of [Currency A] devalues by more than [X]% relative to [Currency B], the Parties agree to adjust the terms of this Agreement to reflect the impact of such devaluation on the cost of goods or services.
Adjustments clause with provision for adjustments due to changes in insurance costs
This version includes insurance cost changes.
If the cost of insurance required for the performance of this Agreement increases significantly due to changes in rates or coverage, the Parties agree to adjust the compensation to account for such increased costs.
Adjustments clause with provision for price adjustments based on market surveys
This version ties adjustments to market surveys.
The Parties agree to conduct a market survey to determine current pricing standards for similar goods or services. If the survey results show that prices have changed significantly, the Parties agree to adjust the terms of this Agreement accordingly.
Adjustments clause with provision for adjustments based on seasonal fluctuations
This version accounts for seasonal fluctuations.
The Parties agree to adjust the terms of this Agreement, including pricing and delivery schedules, to account for seasonal fluctuations in demand, supply, or cost, with the adjustments to be based on mutually agreed terms.
Adjustments clause with provision for adjustments based on vendor performance
This version includes vendor performance.
If [Party B]’s performance, including delivery or quality standards, does not meet the agreed-upon specifications, the Parties agree to adjust the compensation or delivery schedule to reflect the impact of such performance failures.
Adjustments clause with provision for adjustments due to changes in regulations
This version ties adjustments to regulatory changes.
The Parties agree that any changes in regulations, laws, or policies affecting the performance of this Agreement shall result in an adjustment to the terms, including compensation, to ensure compliance with the new requirements.
Adjustments clause with provision for adjustments in response to technological failures
This version addresses technological failures.
If there are technological failures or system breakdowns that affect the performance or delivery of goods and services under this Agreement, the Parties agree to adjust the terms, including timelines and compensation, to reflect the impact of such failures.
Adjustments clause with provision for price increases due to changes in raw material costs
This version addresses raw material costs.
In the event of a significant increase in the cost of raw materials required for the performance of this Agreement, [Party A] reserves the right to adjust the prices specified in this Agreement to reflect such increases, with prior written notice to [Party B].
Adjustments clause with provision for adjustments based on project delays
This version covers project delays.
If the completion of the project outlined in this Agreement is delayed due to circumstances beyond the Parties' control, the Parties agree to adjust the deadlines and compensation in a manner that reflects the delay.
Adjustments clause with provision for adjustments in pricing due to industry standards
This version adjusts pricing based on industry standards.
The Parties agree that the pricing outlined in this Agreement may be adjusted based on changes in industry standards or average market rates for similar goods or services. Adjustments will be made annually based on the prevailing industry rates.
Adjustments clause with provision for adjustments due to unforeseen technological developments
This version addresses technological developments.
If new technological developments or advancements significantly affect the performance or delivery of services under this Agreement, the Parties agree to adjust the terms to accommodate such developments, with the specific adjustments to be determined jointly.
Adjustments clause with provision for price review based on supplier cost increases
This version addresses supplier cost increases.
If the cost of materials or services provided by [Party B]’s suppliers increases by more than [X]% during the term of this Agreement, [Party A] may request a price review and adjustment to reflect the increased costs.
Adjustments clause with provision for adjustments due to changes in law or tax rates
This version covers law or tax changes.
In the event that changes in applicable law or tax rates result in an increase in the cost of performing under this Agreement, the Parties agree to adjust the terms, including compensation, to account for such changes.
Adjustments clause with provision for adjustments based on changes in delivery requirements
This version covers changes in delivery requirements.
If [Party A] modifies the delivery schedule or requirements after the execution of this Agreement, the Parties agree to adjust the pricing and timeline to reflect such changes, with mutual written consent.
Adjustments clause with provision for adjustments in response to government mandates
This version includes government mandates.
If any government mandates or regulations affect the performance or cost of fulfilling this Agreement, the Parties agree to adjust the terms, including pricing, to ensure compliance and reflect the impact of such mandates.
Adjustments clause with provision for adjustments based on warranty claims
This version addresses warranty claims.
If any warranty claims arise during the term of this Agreement that affect the goods or services provided, the Parties agree to adjust the terms, including compensation, to reflect the costs incurred to address such claims.
Adjustments clause with provision for adjustments following changes in supplier contracts
This version includes changes in supplier contracts.
If changes in the terms of supplier contracts, including price increases or other conditions, affect the performance or cost under this Agreement, [Party A] may request an adjustment to the terms, including pricing, to reflect such changes.
Adjustments clause with provision for adjustments based on performance bonuses or penalties
This version ties adjustments to performance bonuses or penalties.
The Parties agree that performance bonuses or penalties will be calculated based on the successful completion of milestones as specified in [Exhibit A]. Adjustments to pricing will be made accordingly if performance targets are met or missed.
Adjustments clause with provision for adjustments due to delays caused by labor strikes
This version covers labor strikes.
In the event of a labor strike or work stoppage that delays performance under this Agreement, the Parties agree to adjust delivery timelines and compensation to account for the impact of such disruptions.
Adjustments clause with provision for adjustments based on seasonal demand fluctuations
This version includes seasonal demand fluctuations.
The Parties agree to adjust pricing and delivery schedules to account for seasonal fluctuations in demand for the goods or services provided under this Agreement, with adjustments to be made based on market trends and mutually agreed terms.
Adjustments clause with provision for adjustments based on failure to meet agreed quality standards
This version addresses quality standards.
If the quality of goods or services delivered under this Agreement fails to meet the agreed-upon standards, the Parties agree to adjust the terms, including compensation, to reflect the rectification of such issues.
Adjustments clause with provision for adjustments due to changes in health and safety regulations
This version covers health and safety regulations.
In the event that new health and safety regulations are introduced that affect the performance of this Agreement, the Parties agree to adjust the terms, including pricing, to reflect the costs associated with compliance.
Adjustments clause with provision for adjustments based on unanticipated costs
This version covers unanticipated costs.
If unanticipated costs arise, such as increased transportation fees, tariffs, or unforeseen regulatory compliance costs, the Parties agree to adjust the compensation under this Agreement to reflect such additional expenses.
Adjustments clause with provision for adjustments based on unforeseen changes in technology
This version includes unforeseen changes in technology.
If significant technological changes occur during the performance of this Agreement that impact the cost or performance of the deliverables, the Parties agree to adjust the terms, including pricing, to account for the new technology.
Adjustments clause with provision for adjustments for changes in government funding
This version addresses government funding changes.
If there is a change in government funding or subsidies that affect the ability of either Party to perform their obligations under this Agreement, the Parties agree to adjust the terms, including compensation, to reflect the loss or gain of such funding.
Adjustments clause with provision for adjustments to account for inflationary pressures on materials
This version includes inflationary pressures on materials.
If inflation causes a significant increase in the cost of materials required for the performance of this Agreement, the Parties agree to adjust the pricing to reflect these increased costs, with such adjustments to be made annually.
Adjustments clause with provision for adjustments due to increased freight charges
This version addresses increased freight charges.
If freight charges or transportation costs increase by more than [X]% during the term of this Agreement, the Parties agree to adjust the terms, including pricing, to account for the increased shipping costs.
Adjustments clause with provision for adjustments based on changes in utility rates
This version includes utility rate changes.
If the rates for utilities, including electricity, water, or gas, increase significantly during the term of this Agreement, the Parties agree to adjust the terms, including pricing, to reflect the increased utility costs associated with performing under the Agreement.
Adjustments clause with provision for adjustments due to changes in tariffs
This version includes tariffs.
In the event that tariffs or import duties increase during the term of this Agreement, [Party A] may adjust the pricing and other terms to account for the increase in costs due to the new tariffs.
Adjustments clause with provision for adjustments in response to technological or software updates
This version addresses software updates.
The Parties agree that, if significant technological or software updates are required during the term of this Agreement that affect the scope of services, the terms, including pricing and delivery schedules, will be adjusted accordingly.
Adjustments clause with provision for adjustments based on changes in trade laws
This version includes trade law changes.
If any changes in trade laws, such as import/export restrictions, affect the performance of this Agreement, the Parties agree to adjust the terms, including compensation and delivery schedules, to comply with the new regulations.
Adjustments clause with provision for adjustments based on market demand for services
This version includes market demand for services.
If there is a significant increase or decrease in the market demand for the services provided under this Agreement, the Parties agree to adjust the pricing, timelines, and terms to reflect the changes in demand.
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