What Is a Price Restriction Clause in a Contract?

A price restriction limits a party's ability to raise or lower prices — for example, a first-year price freeze, a cap on yearly increases, or a promise not to sell below a set price. It fixes part of the deal's economics in advance, so later changes need the other side's agreement or the route the contract sets.

Analyze my contract — free Full mechanics: 7 Things to Negotiate Before You Sign a Contract (2026)

Why it matters

It can protect a buyer from sudden increases or a seller from being undercut. The details — how long, by how much, and what counts as a price — decide who carries the risk of rising costs.

How common is it?

In the 510 public-company commercial contracts of the CUAD dataset (The Atticus Project, CC BY 4.0), 15 (2.9%) contain a price restriction.

Among contract types with at least 20 contracts in the set, it shows up most in hosting agreements (2 of 20), distribution agreements (2 of 32) and co-branding agreements (1 of 22).

These are larger-company deals, not a sample of every contract — a reference point, not a rule. Full method: /data/cuad.

What to watch for

An increase cap that covers the base price but not fees or add-ons.
A freeze that ends at renewal, when switching is hardest.
A minimum resale price the contract sets for you.

A realistic example

A café signs a two-year supply deal with a “price freeze.” In month thirteen the supplier adds a delivery surcharge: the freeze covered the coffee, not the delivery.

What to ask for

A cap on total charges, not only the base price.
The same cap at renewal, with written notice before any increase.

See how the price restriction reads in your contract — 👉 Analyze your contract free — your first analysis is free, no card, no deadline to use it.

Not legal advice. This is an educational definition of a common contract term. Details vary by jurisdiction — this page explains common U.S. usage. For high-stakes agreements, have a lawyer review the final version.