70AAlteration of agreements where law relating to sales tax altered

70A Alteration of agreements where law relating to sales tax altered

Where an agreement for the sale of goods has been made and, after the date of the agreement, an alteration has taken place in the law relating to sales tax, as the result of which the cost of supplying the goods is affected, unless the agreement contains express written provision that the price at which the goods shall be sold shall not be altered on account of any alteration in the law relating to sales tax, or it is clear from the terms of the agreement that the alteration of the law has been taken into account in the agreed price of the goods, the agreement shall be altered as follows: (a) if the cost of supplying the goods is increased, the vendor may add to the agreed price an amount equivalent to the amount by which that cost has been increased as the result of the alteration of the law; or (b) if the cost of supplying the goods is reduced, the purchaser may deduct from the agreed price an amount equivalent to the amount by which that cost has been reduced as the result of the alteration of the law.