Legal Definitions - unit pricing

Definition: Unit pricing is a system where items are priced per unit instead of having a fixed price for the entire contract.

Example: Let's say a construction company is building a road. Instead of charging a flat fee for the entire project, they might charge per unit of road built. For example, they might charge $10 per square foot of road built. This way, the client only pays for the exact amount of work done.

Another example: A grocery store might use unit pricing to show the cost per ounce or pound of a product. This allows customers to compare prices between different brands and sizes of the same product.

Unit pricing is a fair way to charge for work or products because it ensures that the customer only pays for what they actually receive. It also allows for easy comparison between different options.