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Charlie Company modified an existing contract with a buyer to add on additional goods. The original goods and the additional goods may be used independently
Charlie Company modified an existing contract with a buyer to add on additional goods. The original goods and the additional goods may be used independently and are considered distinct. Charlie intends to modify the existing contract in a manner that will result in a new separate contract. How should Charlie price the additional goods to ensure that a new separate contract is created?
The consideration for the additional goods should reflect appropriate standalone prices.
The consideration for the additional goosing must be clearly articulated in the contract so that a blended price may be calculated.
The consideration should reflect the average cost of the additional goods being sold.
The consideration should reflect a market index adjustment for the change in pricing between the original contract and the contract modification.
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