Under the UCC, when is a price term considered definite?

Under the UCC, when is a price term considered definite?

• A. A price term may be missing if a reasonable price is to be determined at delivery.
• B. It must be fixed in dollars at the time of contract.
• C. It cannot be determined later.
• D. It must be determined by the offeree.

Answer: (A)

Under the UCC, price terms for a goods contract can be left open if the parties intend to be bound and there is a reasonably certain way to determine the price. If no price is fixed, the contract can still be enforceable because the price will be a reasonable price at the time of delivery. This allows the market to set the price rather than tying the deal to a specific dollar amount at the outset. So the correct idea is that a price term may be missing as long as the price is to be determined by a reasonable price at delivery. The other options push for fixed dollars at contract formation, insist the price cannot be determined later, or require the offeree to set the price, none of which align with the UCC rule that the price can be determined by the market or other reasonable means at the time of delivery.

Under the UCC, price terms for a goods contract can be left open if the parties intend to be bound and there is a reasonably certain way to determine the price. If no price is fixed, the contract can still be enforceable because the price will be a reasonable price at the time of delivery. This allows the market to set the price rather than tying the deal to a specific dollar amount at the outset.

So the correct idea is that a price term may be missing as long as the price is to be determined by a reasonable price at delivery. The other options push for fixed dollars at contract formation, insist the price cannot be determined later, or require the offeree to set the price, none of which align with the UCC rule that the price can be determined by the market or other reasonable means at the time of delivery.