Can this agreement be signed electronically?

Yes. Electronic signatures are legally enforceable in the United States under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, signer attribution, and retention are documented to meet the esign legal validity test.

Do I need a notary or witnesses?

Usually not for commercial amendments, but state or industry rules can require notarization or witnesses in specific situations; check state law and the original contract. Some states or counterparty policies may require notarization for certain instruments.

What if a party wants to revoke the adjustment?

Revocation depends on the agreement's termination provisions and applicable contract law. A unilateral revocation generally requires written consent or a separate amendment; consult counsel for disputed terminations.

How do I correct a signed agreement?

Corrections should be made by a follow-up amendment signed by all original parties. Do not alter an executed PDF; that risks tampering claims. Record the reason for correction and retain both versions.

Which signatures are acceptable?

Typed, drawn, or click-to-sign electronic signatures are generally acceptable under ESIGN/UETA. Certain regulated contexts may require stronger authentication or PKI-based digital signatures—assess industry rules before selecting a method.

How long should I keep the executed agreement?

Retain with the contract file for at least the active term plus a post-termination period (commonly 7 years); follow federal retention baselines such as IRC §6501(a) for tax-related records and 45 CFR §164.530(j) for HIPAA-covered documents.

Electronic Signature
Templates
Miscellaneous
Price Adjustment Agreement

Price Adjustment Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

PRICE ADJUSTMENT AGREEMENT

This Price Adjustment Agreement ("Agreement") is entered into as of Effective Date: by and between Supplier Name: and Buyer Name: .

WHEREAS

WHEREAS, Supplier and Buyer entered into a contract for certain goods and/or services described below (the "Contract"); and

WHEREAS, the Parties wish to set forth the terms and procedures by which prices payable under the Contract may be adjusted to reflect changes in costs, indices, or other defined factors; and

WHEREAS, the Parties intend for this Agreement to govern price adjustments for the goods and services identified in the Scope of Work below.

SCOPE OF WORK

Description of goods or services subject to adjustment

PRICE ADJUSTMENT TERMS

Original Contract Price: $ Current Agreed Price: $ Adjusted Price (if known): $

Adjustment Effective Date: Adjustment Notice Period: days

Basis for Adjustment (select all applicable)

Material cost index or supplier invoices Labor cost increase (documented wage changes) Consumer Price Index or other published index Fixed percentage adjustment Other

Calculation Method: Adjusted Price shall be calculated by applying the documented change in the agreed cost driver(s) to the Current Agreed Price. Where a percentage adjustment is used, the adjustment percentage is: % . The Parties agree the calculation shall be supported by written documentation and delivered with the adjustment notice.

Cap on Adjustment: The maximum cumulative increase in price under this Agreement for any single adjustment shall not exceed % of the Current Agreed Price, unless otherwise mutually agreed in writing.

PAYMENT TERMS

Invoicing: Supplier shall submit an itemized invoice reflecting the Adjusted Price and supporting documentation within days of the Adjustment Effective Date.

Payment Due: Buyer shall pay undisputed amounts within days of receipt of Supplier's invoice.

Late Payment: Late payments shall incur interest at a rate of % per month on the overdue balance, compounded monthly, or a flat late fee of $ , whichever is greater.

TERM AND TERMINATION

Term Start Date: , Term End Date: .

Either Party may terminate this Agreement for material breach by the other Party that is not cured within days after written notice. Termination shall not relieve Buyer of payment obligations for goods or services delivered prior to the effective date of termination.

CONFIDENTIALITY

Each Party shall maintain in confidence and shall not disclose to any third party any non-public information received from the other Party in connection with price calculations, cost data, business processes, or trade secrets. Confidential information excludes information that is (i) in the public domain through no breach of this Agreement, (ii) already lawfully in the receiving Party's possession prior to disclosure, or (iii) required to be disclosed by law or legal process, provided that the disclosing Party is given prompt notice to seek protective measures.

NOTICES

Supplier Notice Address Buyer Notice Address

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of law principles. The Parties shall first attempt to resolve disputes arising under this Agreement through good faith negotiation. If the Parties cannot resolve the dispute within thirty (30) days, either Party may pursue any available legal or equitable remedies.

ENTIRE AGREEMENT

This Agreement, together with any referenced documents and the underlying Contract, constitutes the entire agreement between the Parties with respect to price adjustments and supersedes all prior negotiations, representations, or agreements, whether written or oral, relating to price adjustment of the goods and services described herein. Any amendment must be in writing and signed by authorized representatives of both Parties.

REPRESENTATIONS

Each Party represents and warrants that it has full corporate power and authority to enter into and perform its obligations under this Agreement and that the person signing below is duly authorized to execute this Agreement on its behalf.

Supplier (Party A):

Printed Name:

By:

Date:

Buyer (Party B):

Printed Name:

By:

Date:

What a Price Adjustment Agreement Is and When It Applies

A Price Adjustment Agreement records a change to pricing terms between contracting parties after the original contract was executed. It typically identifies the original agreement, describes the adjustment (increase, decrease, rebate, or credit), states the effective date, and specifies any payment or refund mechanics. The document creates a binding amendment when signed by authorized parties and can be used to document single events or ongoing indexed adjustments tied to formulas or external indices.

Why a Clear Price Adjustment Agreement Matters

A well-drafted Price Adjustment Agreement reduces disputes, clarifies timing and amounts, and preserves audit evidence for accounting and compliance purposes. It ensures both parties agree to the method of calculation, effective date, and consequences for nonpayment.

Who Typically Prepares and Signs This Agreement

Common users include commercial contracting teams, procurement officers, sales managers, and small-business owners who need formal notice of a price change.

Procurement teams reviewing contract amendments and approvals internally before countersignature.
Sales and account managers documenting client-approved pricing updates and promotions.
Finance and billing staff updating invoice schedules and tax reporting after the adjustment.

The agreement should be routed to the person with delegated signature authority and retained with the original contract for corporate records.

Core Elements to Include in a Professional Price Adjustment Agreement

A complete agreement combines transactional detail with procedural provisions to avoid ambiguity and enforceability issues.

Adjusted Price

State the exact dollar amount or percentage change and, if applicable, the per-unit price. Clearly indicate whether the adjustment is a one-time modification or recurring change tied to an index or schedule.

Effective Date

Provide the specific date when the new pricing takes effect and whether it applies to shipments, invoices, or orders created before that date to avoid retroactive disputes.

Calculation Formula

If price changes are formula-driven, include the full formula, source data (indexes), frequency of recalculation, and rounding rules to ensure reproducible results.

Scope of Change

Specify which products, services, SKUs, or customer accounts the adjustment covers and whether exclusions or minimum order quantities apply.

Payment and Billing

Describe invoicing adjustments, credit or refund processes, billing timelines, and whether taxes are recalculated or remain based on original pricing.

Authorization

Identify who is authorized to approve adjustments, reference delegation of authority, and require signature blocks for authorized representatives of each party.

Step-by-Step: How to Complete and Execute the Agreement

Use this sequential checklist to prepare, approve, and finalize a Price Adjustment Agreement.

01

Draft Amendment: Prepare the adjustment language and attach supporting cost data.
02

Obtain Approvals: Secure sign-off from authorized internal approvers before sending.
03

Execute Signatures: Collect signatures from both parties using an accepted method.
04

Distribute Copies: Provide executed copies to finance, legal, and the counterparty.

Recommended Digital Workflow Settings for Online Completion

Configure fields, authentication, and retention before sending the agreement for signature.

Field	Configuration
Authentication Method	Email link or SMS code
Signature Type	Electronic signature with audit trail
Template Name	Price Adjustment Agreement
Notification Recipients	Signer, countersigner, finance

Platform and File Requirements for eSigning and eSubmission

Ensure the platform supports standard formats, audit trails, and the authentication required by your organization before sending for signatures.

File Formats: PDF or DOCX recommended
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS and AES-256 encryption

Store the executed PDF with its audit trail and version history in your records system; ensure access controls align with retention policies.

How Electronic Execution Typically Works

A standard eSignature workflow reduces turnaround time and preserves evidence of consent and execution.

Upload Document: Sender uploads final agreement to the signing platform.
Place Fields: Add signature, date, and conditional fields as required.
Authenticate Signers: Signers verify identity by email, SMS, or stronger methods.
Capture Audit Trail: Platform records timestamps, IPs, and actions for the final PDF.

Cost and Feature Comparison for eSignature Providers

Compare starting prices and core features relevant to signing Price Adjustment Agreements. Columns list vendors with signNow first.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No

Consequences of an Incorrect or Incomplete Agreement

Contract Breach: Legal damages or specific performance

Tax Exposure: Incorrect reporting or IRS inquiry

Enforceability Risk: Missing signatures may void amendment

Dispute Costs: Litigation or arbitration expenses

Regulatory Noncompliance: Violating industry rules and fines

Reputational Harm: Loss of customer trust and relationships

Common Mistakes to Avoid When Preparing This Agreement

Failing to specify the exact calculation method for recurring adjustments leads to inconsistent invoicing and disputes between parties over amounts owed.
Using vague language such as 'reasonable' or 'market rate' without objective metrics invites disagreement and complicates enforcement or audits.
Not confirming the signer has delegated authority can result in a later claim that the amendment is unauthorized and therefore ineffective.
Neglecting to attach supporting documentation—supplier notices, index values, or approval emails—makes it harder to substantiate the adjustment during review.

Security and Compliance Controls to Consider

In-Transit Encryption: TLS 1.2/1.3

At-Rest Encryption: AES-256

Regulatory Standards: ESIGN, UETA compliant

Health Data: HIPAA (BAA required)

Audit Controls: Detailed audit trail

Certifications: SOC 2 Type II, ISO 27001

Practical Tips for Accurate and Efficient Completion

Adopting consistent drafting and execution practices reduces disputes and administrative overhead.

Standardize Templates

Use a single, approved Price Adjustment Agreement template with version control and conditional fields to ensure consistency, reduce drafting time, and limit the need for repeated legal review.

Document Support

Attach objective supporting evidence—supplier invoices, published index data, or internal approvals—to the amendment so both parties have the same source material and auditors can verify changes.

Confirm Authority

Require a representation of authority in the signature block and document internal delegations of authority to avoid later challenges to signatory power.

Preserve Audit Trail

Use an eSignature solution that records timestamps, IP addresses, and action logs; store the executed PDF and metadata with your contract repository for compliance and discovery.

Example Scenarios Showing How Organizations Use Price Adjustment Agreements

Two anonymized examples illustrate common uses and outcomes when the agreement is used correctly.

Optica Ventures LLC

A mid-market vendor needed to pass material input cost increases to clients in a tiered contract

The clause tied adjustments to a published commodities index
Using a signed amendment and attached index data reduced customer disputes and streamlined billing reconciliation.

Martin Properties

A property manager reduced service fees for multi-year tenants following scope reductions

The adjustment was effective on a specified future date and applied only to new invoices
Documenting the effective date and obtaining countersignature prevented retroactive credit claims.

Primary Roles Responsible for This Document

Contract Manager

Oversees drafting, ensures the amendment aligns with the master agreement, tracks approvals, and manages storage and audit compliance. Responsible for verifying calculation formulas and coordinating with finance for invoice changes.

Authorized Signatory

An officer or designated representative with delegated authority to bind the organization. Confirms that the adjustment fits approved pricing policy and signs the amendment with name, title, and date for legal effectiveness.

FAQs: Common Questions About Price Adjustment Agreements and eSigning

Answers to frequent questions about legality, notarization, and post-signature changes for this agreement.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally enforceable in the United States under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, signer attribution, and retention are documented to meet the esign legal validity test.
Do I need a notary or witnesses?
Usually not for commercial amendments, but state or industry rules can require notarization or witnesses in specific situations; check state law and the original contract. Some states or counterparty policies may require notarization for certain instruments.
What if a party wants to revoke the adjustment?
Revocation depends on the agreement's termination provisions and applicable contract law. A unilateral revocation generally requires written consent or a separate amendment; consult counsel for disputed terminations.
How do I correct a signed agreement?
Corrections should be made by a follow-up amendment signed by all original parties. Do not alter an executed PDF; that risks tampering claims. Record the reason for correction and retain both versions.
Which signatures are acceptable?
Typed, drawn, or click-to-sign electronic signatures are generally acceptable under ESIGN/UETA. Certain regulated contexts may require stronger authentication or PKI-based digital signatures—assess industry rules before selecting a method.
How long should I keep the executed agreement?
Retain with the contract file for at least the active term plus a post-termination period (commonly 7 years); follow federal retention baselines such as IRC §6501(a) for tax-related records and 45 CFR §164.530(j) for HIPAA-covered documents.

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