What Is per in a Contract

As a professional, I can tell you that “per” is a term frequently used in contracts. In this article, we`ll explore what “per” means in a contract, how it addresses specific details, and why it`s essential to understand its implications.

What is Per in a Contract?

Per is a Latin term that means “by the” or “through the.” In contracts, per is used to indicate how something will be measured, counted, or paid. Typically, a number is placed before it to specify the rate or amount that applies. For example, a contract might state that a consultant will be paid $100 per hour for their services.

Per is used to qualify different types of rates, quantities, and measurements in contracts. You might see it used in phrases like:

– Per diem (meaning “per day”): This term is used to describe a daily expense allowance that covers an employee`s meals or lodging while on a business trip.

– Per unit (meaning “per item”): This term is used to describe how many individual pieces or items are included in a contract, such as how many widgets will be produced or how many books will be sold.

– Per annum (meaning “per year”): This term is used to describe an annual rate, such as the interest rate on a loan or the salary for an employee.

Why is Per Important in Contracts?

Per is an essential term in contracts because it clarifies the details of the agreement. By specifying a per rate or amount, the contract can ensure that both parties are on the same page about how much something costs, how it will be calculated, or how it will be delivered.

For example, suppose a customer agrees to pay a vendor $10,000 per month for services rendered. In that case, the vendor can be confident that they will receive that amount each month, and the customer knows exactly how much they will be paying. Without the “per” qualifier, it would be unclear whether the vendor would receive a flat fee or if the payment would be determined in some other way.

Per can also be used to protect both parties in a contract. If a contract specifies that a vendor will be paid $50 per hour for their work, that rate is fixed and agreed upon. Even if the work takes longer than expected, the vendor will still be paid the same hourly rate. Similarly, if a contract states that a customer will be charged $0.10 per unit, the vendor can`t change the price mid-contract.


In conclusion, “per” is a term used in contracts to indicate how something will be measured, counted, or paid. It is a vital qualifier that ensures both parties are on the same page about the terms of the agreement. By understanding the implications of “per” in contracts, you can avoid confusion and ensure that your business relationships are built on clear expectations.