Provisions that allow the contract price of a commodity to change with changes in its market price are referred to as:
A)omnibus clauses.
B)escape clauses.
C)adjustment clauses.
D)exclusion clauses.

Question

Quizplus · Accepted Answer

Provisions that allow for the contract price to change with fluctuations in the market price are referred to as adjustment clauses. These clauses are commonly found in contracts for commodities or other goods where the market price is subject to change over time. This allows both parties to the contract to share in the risk and benefit of changes in market conditions.

Provisions That Allow the Contract Price of a Commodity to Change