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Lollypop Manufacturer has a long standing contract with Retailer
Suggested Answer: C
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yes- if there is a variation clause and both parties agree. This would usually be written in as a 'price adjustment clause' but if it's not, then it could be agreed and signed by both parties as a 'contract variation'. See p.16 for more details
30 comments · newest first
LA
Larae
11 months ago
Prices always go up? That’s not how contracts work!
GI
Gilberto
11 months ago
If there's a variation clause, they might have a chance.
NI
Nikita
12 months ago
Wait, can they really raise prices mid-contract?
TO
Tora
12 months ago
I agree, changing the price now seems unfair!
LE
Lenna
1 year ago
They’ve been locked in for 2 more years, so no price increase.
EM
Emily
1 year ago
I thought contracts were pretty rigid, but I guess there are exceptions? I’m not confident about this one.
EL
Elmira
1 year ago
I practiced a similar question where a price increase was only allowed if both sides consented. So, I think option C could be correct.
FR
Frederica
1 year ago
I'm not entirely sure, but I feel like a contract should be honored unless both parties agree to changes.
PA
Paris
1 year ago
I remember discussing contracts and how price changes can be tricky. I think a variation clause might be key here.
JA
Jacquelyne
1 year ago
Okay, I think I've got this. The contract has a set price of 10p per lollipop, and it's still got 2 years left. Unless there's a specific variation clause that allows for a price change, I don't see how the manufacturer could increase the price unilaterally. Gotta read those contract terms carefully!
AM
Amie
1 year ago
Well, I definitely wouldn't say that prices always go up in contracts. That seems like a risky assumption. I think the safest answer is that a price increase would not be allowed, since the contract is still ongoing.
NA
Nada
1 year ago
Hmm, I'm not sure about this one. The question says the contract is ongoing for another 2 years, so I'm not sure if a price increase would be allowed. I'll need to think this through carefully.
QU
Queen
1 year ago
I think the key here is to look for any variation clause in the contract that would allow for a price increase. If there is one, and both parties agree, then it seems like a price increase could be possible.
IS
Isadora
2 years ago
I'm gonna have to go with option C as well. Gotta love those variation clauses, they really come in handy!
LI
Linwood
2 years ago
As long as it's done in a transparent and fair manner, a price increase can be negotiated.
CH
Christiane
2 years ago
I think it's fair to consider a price increase if both parties benefit from it.
JU
Junita
2 years ago
Agreed, it's important for both parties to agree on any changes to the contract.
RU
Rutha
2 years ago
I'm gonna have to go with option C as well. Gotta love those variation clauses, they really come in handy!
JA
Jarvis
2 years ago
Hah, option D is definitely a trap answer. Prices don't always go up in contracts, that's just silly.
TH
Theodora
2 years ago
I don't know, I'm thinking option A might be the best answer. The contract is still ongoing, so they can't just change the price unilaterally.
DE
Dean
2 years ago
Yes, it's important to follow the terms of the contract. Option A is the way to go.
DI
Dierdre
2 years ago
I agree, option A makes sense. The contract is still in place.
CA
Casey
2 years ago
That's true, unless there is a variation clause and both parties agree to it.
KA
Kattie
2 years ago
But the contract is still ongoing for another 2 years, so they might not be able to change the price.
CA
Casey
2 years ago
I think Lollypop Manufacturer should be able to ask for a price increase.
TA
Tandra
2 years ago
Option C seems like the way to go here. If there's a variation clause and both parties agree, then a price increase should be allowed.
AM
Ammie
2 years ago
If there's no agreement, it could definitely cause some tension in the contract relationship.
DU
Dustin
2 years ago
But what if the buyer doesn't agree to the price increase? Would the contract be at risk?
GE
Gerald
2 years ago
I agree, it's important for both parties to be on the same page when it comes to contract changes.
CH
Chauncey
2 years ago
Option C seems like the way to go here. If there's a variation clause and both parties agree, then a price increase should be allowed.