This clause lets one party (usually the company selling to you) raise prices whenever they want, sometimes with only 30 days' notice. While businesses do face real cost increases, an unlimited price increase clause gives them total control and leaves you vulnerable. UK consumer law and US state laws restrict how much notice is required and whether increases must be "reasonable," but these protections are weaker for business-to-business contracts. You could end up paying 50% more with little recourse.
Negotiate a cap on annual increases (for example, "not more than 5% per year" or "not more than inflation plus 2%"). Require at least 90 days' written notice and the right to terminate without penalty if you reject the increase. If they won't cap increases, build this uncertainty into your budget planning. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause lets one party (usually the company selling to you) raise prices whenever they want, sometimes with only 30 days' notice.
Why should I care about this clause?
While businesses do face real cost increases, an unlimited price increase clause gives them total control and leaves you vulnerable.
What are my options?
UK consumer law and US state laws restrict how much notice is required and whether increases must be "reasonable," but these protections are weaker for business-to-business contracts.
How does this affect small businesses?
You could end up paying 50% more with little recourse.