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 fair market value of the goods at the time of delivery.
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, in situations where the price is not set, the price will be determined as a reasonable price based on the fair market value of the goods at the time of delivery. Therefore, option A is correct. Option B is incorrect because the UCC requires that a contract must have a definite price, and a contract without a price is not valid. Option C is also incorrect because the seller has the right to establish the price if they have not agreed upon a price initially. Finally, option D is incorrect because the contract is still valid even if the price is not set initially, as the UCC determines a reasonable price for such situations.

David and George Have a Contract Wherein George Agrees to Buy