If a contract for the sale of goods leaves price term indefinite, the term is known as a

If a contract for the sale of goods leaves price term indefinite, the term is known as a

• A. Uncertain price term
• B. Indefinite price term
• C. Open price term
• D. Void price term

Answer: (C)

Open price term. Under the Uniform Commercial Code, a contract for the sale of goods can be formed even if the price isn’t fixed at the time of contracting. The price term is left open, to be fixed later in good faith by one of the parties or by a method the parties have agreed upon. This keeps the deal enforceable because the price can be determined by a specified mechanism—such as market price at delivery, a price list, or a method the parties agreed to use—rather than rendering the contract void for indefiniteness. The other descriptions aren’t standard terms in the UCC for this situation; they don’t capture that the price can be determined later under a valid open price-term rule.

Open price term. Under the Uniform Commercial Code, a contract for the sale of goods can be formed even if the price isn’t fixed at the time of contracting. The price term is left open, to be fixed later in good faith by one of the parties or by a method the parties have agreed upon. This keeps the deal enforceable because the price can be determined by a specified mechanism—such as market price at delivery, a price list, or a method the parties agreed to use—rather than rendering the contract void for indefiniteness. The other descriptions aren’t standard terms in the UCC for this situation; they don’t capture that the price can be determined later under a valid open price-term rule.