Metro Daily and New City Newsstand enter into a contract under which Metro agrees to deliver a certain quantity of newspapers to New City each day. The contract does not include a price term. In a suit between the par?ties over the price, a court will

Question

Quizplus · Accepted Answer

In the absence of a price term, the court will determine a reasonable price based on the facts and circumstances surrounding the contract. This is known as an implied price term, and the court will use factors such as industry standards, previous dealings between the parties, and the fair market value of the goods or services to determine the price. Option B is not correct because the court will not impose a price that is lower than the fair market value. Options C and D are also not correct because the court will seek to enforce the agreement by determining a reasonable price.

Metro Daily and New City Newsstand Enter into a Contract