Contract Price


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Contract Price

In common law, the amount of money one receives in exchange for providing a good or service outlined in a contract. The contract price must be stated in the contract. For example, if two parties make a contract to sell a house for $100,000, the contract price is $100,000.

contract price

A tax term used in the calculation of gain realized on an installment sale. It is the selling price, minus any mortgage debt assumed by the buyer, plus the excess of any such liens collected in addition to the seller's equity in the property.

Contract Price

With respect to an installment sale, one of the amounts used to compute the percentage of each principal payment that is taxable as gain. The contract is equal to the gross selling price when no mortgages are assumed. If a mortgage is assumed, the contract price is the gross selling price minus the amount of the mortgage plus the excess (if any) of the mortgage over the seller's basis and expenses of sale.
References in periodicals archive ?
In the first case, this happens because the actual dollar price decreases, while in the second case, the dollar value of the increased yen price is less than the contract price of $9.43.
It argued that because the Applegates had the unrestricted right to demand the entire contract price at any time during the first year, there was in fact full payment during the first year.
It specifies that when the contractor gives a federal agency a price lower than the schedule contract price for the item, and the order is within the maximum order limitation (MOL), an equivalent price reduction applies to all subsequent sales.
The first step is to hypothetically reapply the PCM to all long-term contracts completed or adjusted in the current year using actual (rather than estimated) total contract price and contract costs (Regs.

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