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Contract types

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1. What are example of the types of goods and/or services that you would acquire under these three type of contract.

1) Fixed Price
2) Cost Reimbursable
3) Other, such as Time and Materials, Labor Hour, Letter Contract

2. What are some of problems associated with selecting the wrong contract type?

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https://brainmass.com/business/business-law/contract-types-fixed-price-cost-reimbursable-other-369331

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Q1. What are examples of the types of goods and/or services that you would acquire under these three type of contract.
1. Fixed Price - A fixed price contract means exactly what it says - the price of the contract is fixed and there is no additional negotiating allowed if the cost of goods or labor increases. This type of contract is typically used within the government setting. The risk involved with this contract is placed on the vendor because if the costs increase the vendor must absorb the loss to meet the requirements of the contract. This type of contract is commonly established with a buyer that has repeatedly purchased the same good from the vendor and an accurate forecast of the planned costs can be made.
2. Cost ...

Solution Summary

This solution helps explore three types of contract within the context of business law.

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