American Products Company and Best Manufacturing, Inc. (BMI), enter into a contract for the sale of a certain quantity of machine parts, with BMI to determine the price. The price must be fixed according to the con?cept of

Question

Quizplus · Accepted Answer

Good faith is a principle of fairness and honesty in trade, and it requires that parties to a contract deal with each other honestly and fairly. In this case, since the price is to be determined by BMI, good faith would require that BMI determines a price that is reasonable and fair. The other options are not relevant to determining the price of the machine parts.