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Protect Customer Contracts And Price. For example if you purchase an airline ticket to Orlando for 750 on January 1 with a credit card but then the price falls to 500 on January 23 a price protection guarantee in the credit card contract. This is because many entities offer customers a price concession after the initial contractresulting in the seller receiving less consideration than it is entitled to in the contract.
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The contract is intended to protect both the customer and supplier from external conditions over which they have no control. If prices rise above the futures price a higher contract price can be captured. Price Later Delayed PricingDP Contracts.
To avoid this problem make sure allowances are realistic or make product selections as early as possible.
Entities may find themselves using significant judgement in determining whether they have provided an implicit price concession or if the collection of the contract price will be reduced due to the customers. This is a guarantee that it will serve the purpose it was purchased forin other words. Provides protection against excessive wear and tear charges up to 5000 on lease vehicles for a wide variety of interior and exterior components and wear items. If prices rise above the futures price a higher contract price can be captured.
