The choice of the billing method.<br>In trade in goods, the traditional practice is to adopt fixed prices, sometimes non-fixed prices. In the sale of machinery and equipment, western businesses often use price adjustment clauses. The so-called fixed price, refers to the two sides to negotiate and negotiate, in the contract clearly specified the specific transaction price, once the price is specified, in the contract period without adjustment. Fixed price is characterized by clear and specific price provisions, easy for both parties to settle. However, there may be various unexpected changes in the market, after the price is determined, all parties to the transaction are faced with greater risks, the market changes too much may also endanger the smooth performance of the contract. The so-called non-fixed price, refers to the parties to the contract negotiations, does not specify a specific price, but only a price, the specific price is left to be determined at a later date: or the contract provides for the provisional price as the basis for the buyer's payment, the price is determined before settlement.<br>Non-fixed prices allow parties to temporarily open price differences, reduce the risks they can encounter, and help facilitate the signing of long-term cooperation agreements. However, due to the first contract and then the price, the contract inevitably has a greater instability. The so-called price adjustment clause refers to the conclusion of the contract only set a preliminary price, while specifying the conditions and methods of future price adjustment, once the future market changes meet the conditions, according to the adjustment clause in the method of price adjustment. The use of price adjustment clauses, neither the price will be fixed, but also through the provision of specific adjustment methods, so that the future performance of the price adjustment has clear rules, do not need the two negotiators to adjust the price side of the renegotiation, price adjustment clause is an effective means to reduce transaction risk, improve contract stability.
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