If a contract for the sale of goods has an open price term, what does the court typically do?

If a contract for the sale of goods has an open price term, what does the court typically do?

• A. Declares the contract unenforceable
• B. Reads in a reasonable price term
• C. Requires a price term to be provided by the parties
• D. Uses the last price paid by the buyer

Answer: (B)

When a contract for the sale of goods leaves the price term open, the court fills in a reasonable price at the time of delivery. This reflects the UCC rule that open price terms don’t prevent formation; instead, the agreement remains enforceable by supplying the missing price in a manner consistent with commercial practice. If the contract says the price will be fixed by the contract or by market mechanisms and nothing is fixed, the court uses a reasonable price for delivery, often measured by the prevailing market price. The effect is to keep the deal alive rather than render it unenforceable or to demand a price term from the parties after the fact. Using the last price paid by the buyer isn’t the standard method under this rule; the usual approach is a reasonable market price at delivery.

When a contract for the sale of goods leaves the price term open, the court fills in a reasonable price at the time of delivery. This reflects the UCC rule that open price terms don’t prevent formation; instead, the agreement remains enforceable by supplying the missing price in a manner consistent with commercial practice. If the contract says the price will be fixed by the contract or by market mechanisms and nothing is fixed, the court uses a reasonable price for delivery, often measured by the prevailing market price. The effect is to keep the deal alive rather than render it unenforceable or to demand a price term from the parties after the fact. Using the last price paid by the buyer isn’t the standard method under this rule; the usual approach is a reasonable market price at delivery.