What is it?
Fixed is a clause type in contract law that governs price or rate stability.
fixed
Contract LawLegal glossary term
Quick answer
Fixed usually means a set amount that cannot change. In contracts, it matters because the other party cannot later demand a higher price. Before signing, verify that the fixed amount includes any needed exceptions.
Definitions
What is fixed?
Legal Definition
A fixed provision locks a value—price, rate, or fee—into a contract so it cannot be altered later. It creates a non‑negotiable obligation for the other side to pay or perform at that set amount. The key qualifier is whether the clause carves out force‑majeure exceptions.
Plain-English Translation
Think of a hall pass that lets a student eat lunch only at noon; a fixed term lets the buyer pay the exact price written, no matter how market costs change.
Contract relevance
Why fixed matters in contracts
Ignoring a fixed clause can trigger a breach claim, leaving the buyer on the hook for extra costs.
Document context
Where fixed appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Sales contract | Price Schedule | Guarantees a set purchase price |
| Construction agreement | Fixed‑Price Section | Locks total project cost |
| Software license | Fees Clause | Determines annual licensing fee |
| Loan agreement | Interest Rate Section | Sets a non‑adjustable rate |
| Franchise agreement | Royalty Provision | Establishes a constant monthly fee |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| "The purchase price shall be fixed at $150,000" | Sets an unchangeable price | Confirm the amount is exact and includes taxes |
| "Interest shall be fixed at 4.5% for the term" | Locks the rate for the loan duration | Check for any carve‑outs for default |
| "Royalty fee is fixed at $300 per month" | Defines a constant fee | Ensure no escalation language follows |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
"Fixed amount, subject to adjustment"
Clearer wording
"Fixed amount"
Vague wording
"Rate shall be fixed, except as required by law"
Clearer wording
"Rate shall be fixed"
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Verify the exact dollar figure or percentage is spelled out
2
Confirm there are no hidden adjustment triggers
3
Identify any exceptions for force‑majeure or regulatory changes
4
Check who bears tax, shipping, or ancillary costs
5
Ensure the clause references the correct contract section
6
Ask whether the fixed term survives amendment of other provisions
7
Determine the notice period, if any, for early termination
Party impact
How fixed affects each party
| Party | What this party should check |
|---|---|
| Seller | Ensure the fixed price covers all anticipated costs |
| Buyer | Confirm the amount fits budget and assess risk of market decline |
| Lender | Verify the fixed rate protects against interest volatility |
| Franchisee | Check that the fixed royalty does not exceed projected revenue |
Comparison
fixed vs similar terms
| Related term | Plain meaning | Main difference from fixed |
|---|---|---|
| Adjustable‑rate clause | Allows price to vary with an index | Fixed prohibits any variation |
| Escalation clause | Permits increases under defined events | Fixed blocks such increases |
| Price floor | Sets a minimum price only | Fixed sets both minimum and maximum at one value |
Missing or vague
If fixed is missing or vague
Without a clear fixed term, parties may argue over what price applies when costs shift. The buyer might claim the seller can raise fees, while the seller insists the original amount stands. This ambiguity often leads to litigation over breach and damages.
The court will interpret the gap based on surrounding language, which can produce unpredictable results.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions | Look for the definition of "Fixed Price" or "Fixed Rate" |
| Payment Terms | Verify the exact amount and payment schedule |
| Force‑Majeure | Check for any carve‑outs that could override the fixed provision |
| Amendments | Ensure the clause states how changes can be made, if at all |
| Termination | See whether termination triggers repayment of the fixed amount |
Visual model
Understand fixed fast
An explainer image has not been generated for this term yet.
01
Landlord sets a fixed monthly rent of $2,000 in the lease; tenant must pay that amount each month regardless of market rent changes.
02
Borrower signs a loan with a fixed interest rate of 5%; lender receives that rate for the loan term even if the Fed raises rates.
03
Franchisor charges a fixed royalty fee of $500 per month; franchisee pays that amount regardless of sales fluctuations.
Document context
How fixed shows up in legal documents
Why does it matter?
Ignoring a fixed clause can trigger a breach claim, leaving the buyer on the hook for extra costs.
When does it matter?
When the contract is executed and the fixed price clause is signed, the amount becomes enforceable.
Where is it usually seen?
Standard in UCC §2-215 sales contracts, construction agreements, and software licensing agreements.
Who is affected?
The seller secures guaranteed revenue; the buyer locks in budgeting certainty but risks overpaying if market prices fall.
How does it work?
First, the parties negotiate a specific amount and embed it in a fixed‑price clause. Then, upon delivery or performance, the obligated party must pay that exact figure. If a dispute arises, a court enforces the written amount as the contract's term.
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Wikipedia
Fixed
Fixed may refer to: Fixed (EP), EP by Nine Inch Nails Fixed (film), an animated film directed by Genndy Tartakovsky Fixed (typeface), a collection of monospace bitmap fonts that is distributed with the X Window System "Fixed" (The Good Wife), a 2009...
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Where fixed connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
Glossary
Use Cases
Mortgage Agreement
Real Estate Contracts: Your mortgage is likely the largest contract you will ever sign. Read it.
NDA
Legal & Corporate: Signing an NDA is easy. Understanding what you just agreed never to say is harder.
Lease Agreement
Legal & Corporate: Your lease is a 12-month financial commitment — read every line.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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