Fixed-price contract
Okay kiddo, imagine you and your friend want to trade stickers. You really want their cool sparkly unicorn sticker but they want your glittery rainbow one. You both decide to make a deal, where you'll trade one sticker for the other one. This is kind of like a fixed-price contract.
A fixed-price contract is an agreement between two people or companies where they agree on a fixed or set price for a product or service. It's like your sticker trade, where you both agree on a certain number of stickers to exchange.
Now, let's imagine that your friend changes their mind and decides they want two of your stickers instead. If you didn't agree to this in the first place, you might be upset and refuse the trade. Similarly, in a fixed-price contract, if one person wants to change the price or terms of the agreement after it's been made, it can cause problems and disagreements.
So, in a fixed-price contract, both parties need to be sure they're happy with the price and terms before they agree to it. This way, there are no surprises or changes later on. It's like making sure you and your friend agreed on the sticker trade before you both handed over your stickers.
A fixed-price contract is an agreement between two people or companies where they agree on a fixed or set price for a product or service. It's like your sticker trade, where you both agree on a certain number of stickers to exchange.
Now, let's imagine that your friend changes their mind and decides they want two of your stickers instead. If you didn't agree to this in the first place, you might be upset and refuse the trade. Similarly, in a fixed-price contract, if one person wants to change the price or terms of the agreement after it's been made, it can cause problems and disagreements.
So, in a fixed-price contract, both parties need to be sure they're happy with the price and terms before they agree to it. This way, there are no surprises or changes later on. It's like making sure you and your friend agreed on the sticker trade before you both handed over your stickers.