CONTRACT VALUE Meaning and
Definition
-
The term "contract value" refers to the monetary worth or amount assigned to a specific contract or agreement between two or more parties. It represents the total financial commitment or consideration involved in the agreement, typically expressed in terms of currency.
Contract value is determined by evaluating the terms and conditions of the contract, including the agreed-upon price, fees, costs, and any potential penalties or incentives. It signifies the financial obligations or benefits associated with the contract for each party involved.
The contract value is crucial in assessing the profitability and significance of a contract for a business entity. It helps to determine the potential revenue or costs associated with the fulfillment of the contract. Additionally, contract value plays a vital role in financial planning, budgeting, and risk assessment by indicating the financial impact and resources required to fulfill the contractual obligations.
Contract value may also vary during the course of the agreement due to changes in scope, additional services, or modifications to the contract terms. In certain contexts, contract value may be expressed as a total value for the entire contract period or as an annualized value for contracts with an extended duration.
Overall, contract value serves as a fundamental metric in analyzing, assessing, and managing contractual relationships to ensure financial feasibility and successful execution of agreements.
Common Misspellings for CONTRACT VALUE
- xontract value
- vontract value
- fontract value
- dontract value
- cintract value
- ckntract value
- clntract value
- cpntract value
- c0ntract value
- c9ntract value
- cobtract value
- comtract value
- cojtract value
- cohtract value
- conrract value
- confract value
- congract value
- conyract value
- con6ract value
- con5ract value
Etymology of CONTRACT VALUE
The etymology of the phrase "contract value" can be traced back to the Latin language.
The word "contract" originates from the Latin word "contractus", which is the past participle of the verb "contrahere". "Contrahere" is a combination of the prefix "con-" meaning "together" or "with", and the verb "trahere" meaning "to draw" or "to pull".
In Latin, "contractus" referred to an agreement or a binding legal arrangement between two or more parties. Over time, this term was adopted into English with a similar meaning.
The word "value" comes from the Latin word "valere", which means "to be strong, to be of worth". In the context of a contract, "value" refers to the monetary or non-monetary worth or significance of the agreement.
Infographic
Add the infographic to your website:
