David and George have a contract wherein George agrees to buy sporting goods and equipment.Since the goods are not to be delivered for several months,they left the price open.Under the UCC,which of the following will be true?
A)The price will be the reasonable price based on the market value of the goods at the time of delivery or a price established by a neutral party or agency.
B)David has the freedom to set any price he wants considering George was foolish enough to enter into a contract without a price established.
C)George has the right to establish a price because he is the buyer. David should have taken steps to protect his sales interest.
D)None of the above. The contract is not valid because the terms are not definite and certain.

Question

Quizplus · Accepted Answer

Under the UCC, if the price is not specified, it will be determined by the reasonable price based on the market value at the time of delivery or a price established by a neutral party. This is to ensure fairness to both parties and to prevent one party from taking advantage of the other. Therefore, option A is the correct choice. Options B and C are incorrect because they do not follow the UCC rules, and option D is incorrect because the contract is still valid, despite the open price term.

David and George Have a Contract Wherein George Agrees to Buy