Correct Answer: Because fixed-price implies that scope is fixed and discourages the development team from exploring innovative ideas outside the scope that may add value to the product.
Explanation:Fixed-price contracts, although typical of traditional projects where scope is defined ahead of time, are not well suited for agile. When scope is fixed it can deter a team from exploring out-of-scope solutions that may add value to the product. Contracts suited for agile include: general service for the initial phase with fixed- price contracts for successive phases; cost-reimbursable/time and materials; not-to- exceed with fixed-fee; and a combination with incentives. [Agile Software Development: The Cooperative Game – 2nd Edition. Alistair Cockburn.] [Knowledge and Skills: Level 3]