In a contract for the sale of goods with an open price term, the court will

In a contract for the sale of goods with an open price term, the court will

• A. Fill in the price by arbitration
• B. Void the contract
• C. Require explicit price in writing
• D. Read in a reasonable price, unless the contract is for real property

Answer: (D)

When a contract for the sale of goods leaves the price term open, the law allows the price to be supplied so the contract can move forward. Under the UCC, the price can be a reasonable price at the time of delivery if the parties didn’t set it or didn’t use a valid method to determine it. This keeps commercial transactions from failing simply because the parties didn’t nail down a number in advance. The rule applies to goods, not real estate, so there’s an exception: contracts for real property don’t follow this open-price rule. So the best answer reflects that the price will be read in as a reasonable price at delivery unless the contract involves real property. The option about arbitration isn’t required by default, and the contract isn’t void or necessarily tied to a fixed written price.

When a contract for the sale of goods leaves the price term open, the law allows the price to be supplied so the contract can move forward. Under the UCC, the price can be a reasonable price at the time of delivery if the parties didn’t set it or didn’t use a valid method to determine it. This keeps commercial transactions from failing simply because the parties didn’t nail down a number in advance. The rule applies to goods, not real estate, so there’s an exception: contracts for real property don’t follow this open-price rule.

So the best answer reflects that the price will be read in as a reasonable price at delivery unless the contract involves real property. The option about arbitration isn’t required by default, and the contract isn’t void or necessarily tied to a fixed written price.