Contracts may always face a serious challenge under the action of one of the parties or agents outside of them. Generally, at the beginning of drafting the contract, the parties look at the issue with good faith and except for the stereotyped frameworks of brigade contracts, they do not think about possible risks that may threaten that contract, and of course, a solution is also provided for when these risks occur. can’t be seen This misplaced goodwill basically occurs in an environment where if the contract is challenged, none of them respect each other and…​​
Although the attention of the contract adjusters to the above issue may be considered a bit obsessive at the time of drafting the contract, it can be the savior of the contract and the parties in the event of a challenge, which is inevitable in most contracts today.
In this article and the next few articles, I intend to mention some of the main and possible risks of purchase contracts, based on several years of experience in setting up different contracts and consulting in different areas, which will save the relationship between the seller and the buyer in at least one from future contracts. The exchange of opinions on the issues raised will be a basis for synergy.

Part I: Securing the contract against price increases

One of the most important points in contracts is the issue of securing contracts against unusual price increases. This issue is not only in current days but also one of the most challenging topics in purchase contracts, especially long-term contracts. Recently, due to the extreme fluctuations of the market, the latter issue has become a source of many challenges. In general, to secure the contract and the good relations of the parties against this relatively likely and effective threat, there are various methods that are mentioned below.
The reference material determination method: The first method is the reference material determination method. Suppose a cable purchase contract is to be concluded from a cable company. Regarding cable, it is one of the most effective materials in determining the final price of copper, and changes in the price of copper in the stock market will have a direct impact on the unit price of the contract. Although the seller and the buyer, by paying the advance payment and supplying the required copper, can no longer have a claim against each other regarding the increase or decrease in price due to fluctuations in the price of copper, but between the time of signing the contract and the payment of the advance, there may be a serious fluctuation in the price of copper. and this fluctuation will have a direct impact on the contract amount. Therefore, a practical method is to adjust the copper price on the day of the price offer as the base copper price in the registration contract and the unit price of each type of cable, based on the amount of copper used per unit length and the increase in the price of copper.

In this case, it is necessary to mention the necessary provisions for the price adjustment procedure in the contract. For example, the table of the amount of copper used per meter length of each type of cable and the agreed site (to extract the price) and the type of reference copper (Maftul…) to calculate the amount of fluctuation and also the formula for calculating this price adjustment should be mentioned in the contract to Do not be a burden for the next challenges. This method can be applied in similar contracts, such as the contract for the construction of a metal frame, which is also the responsibility of the manufacturer to supply the metal material. In general, whenever it is possible to specify one or more main materials for the contract goods in such a way that a certain reference can be determined to announce the amount of price fluctuations in it, this method can be used.
In this method, the parties can consider a percentage of price fluctuations as accepted. For example, the parties agree that a 5% fluctuation in prices does not include any price adjustment, and for cases exceeding that price adjustment will be made in accordance with the agreements made.
Other methods will be presented in future articles.

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