David and George Have a Contract Wherein George Agrees to Buy

question 12

Multiple Choice

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.

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Definitions:

Binding Contract

A legal agreement between parties that is enforceable by law, requiring all signatories to fulfill their respective obligations.

Party Seeking Coverage

Refers to an individual or entity that is applying for or requesting insurance protection from an insurer.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against risk.

Initial Offer

The first proposal or bid made during negotiations.