A Fixed-Price Contract is a type of agreement where the buyer and seller agree on a specific price for a project or service before work begins. This means that the seller is responsible for completing the work at that price, regardless of any changes in costs or expenses that may arise during the project. These contracts are commonly used in construction and manufacturing, providing clarity and predictability for both parties. If the seller can complete the work for less than the agreed price, they keep the difference, but if costs exceed the fixed price, the seller absorbs those extra costs.