Make sense to me.
Many people belive that you can't do a fixed price contract in an agile project. Since the whole point of an agile process is that you cannot predict the future, this isn't an unreasonable supposition. However this doesn't mean you can't come up with a fixed price agile contract, what it means is that you can't come up with a fixed price and fixed scope contract.
Usually when people say fixed price, they mean fixing price, time, and scope. This requires detailed, stable, and accurate requirements. The whole point of agile development is that it works with more fuzzy requirements. To handle this with a fixed price contract you essentially come up with a plan that says "we have $x to spend and we need a release on 1 Dec. We'll collaborate together to come up with the best set of features to go live with on that date [Martin Fowler's Bliki]
