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Posted Price: A Comprehensive Guide to Its Legal Meaning and Use
Definition & Meaning
The term "posted price" refers to a publicly announced price that indicates what a company will pay for a commodity or the price at which it will sell that commodity. In the context of crude oil, the posted price is a documented price that is shared among buyers and sellers in a specific field, following historical practices known to those involved in the market. This price serves as a benchmark for transactions within that field.
Table of content
Legal Use & context
Posted prices are significant in various legal contexts, particularly in commercial law and contracts related to commodities. They are often used in negotiations and transactions involving crude oil and other commodities, where the price can affect contractual obligations and financial agreements. Users can manage related legal forms, such as contracts and agreements, using templates available through US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A crude oil producer announces a posted price of $70 per barrel for oil extracted from a specific field. Buyers in that field reference this price when negotiating purchase agreements.
Example 2: A company selling natural gas posts a price of $3.50 per thousand cubic feet, which is then used as a benchmark for contracts with distributors. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Posted Price Regulations
Texas
Posted prices are often used in oil and gas leases and must be disclosed in contracts.
California
Regulations require transparency in posted prices for environmental compliance.
Oklahoma
Posted prices must be reported to the state for tax assessment purposes.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Market Price
The current price at which a commodity can be bought or sold.
Posted price is often a fixed or announced price, while market price can fluctuate based on supply and demand.
Spot Price
The price for immediate delivery of a commodity.
Posted price may refer to future transactions, whereas spot price is for immediate exchanges.
Common misunderstandings
What to do if this term applies to you
If you encounter posted prices in your business dealings, ensure you understand how they influence your contracts and negotiations. Consider using legal templates from US Legal Forms to draft necessary agreements related to posted prices. If the situation is complex, consulting a legal professional may be beneficial.
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