Contract Price
Contract Price means the price payable to the supplier under the contract for the full and proper performance of his contractual obligations.
A contract price is a total amount agreed upon by two parties where the project owner or client, known as the principal, pays the contractor when they complete the terms of the contract. This is according to the contract's terms and conditions and other modifications. The contract price is how much money one person receives after providing a service or good outlined in the contract.
This is also a term used in taxes when calculating how much gain was realized for an installment sale. This equals the selling price minus any mortgage debt the buyer assumes and any liens collected on the seller's equity. The gross selling price is equal to the contract when no mortgages are assumed. Assuming a mortgage, the contract price will be the gross selling price minus the mortgage amount. Any mortgage amount that goes over the expenses of sale and seller's basis will also be added. Another term for a contract price is a contract sum. The contract price often includes a down payment, possibly several continuing payments, and will end with the final amount paid to close the contract.
Contract Price: Everything You Need to Know. Upcounsel. Retrieved from: https://www.upcounsel.com/contract-price
Contract Price definition. Law Insider. Retrieved from: https://www.lawinsider.com/dictionary/contract-price