Question

Eric needs all kinds of things for his business. He meets Mark at a ginger ale convention, and they decide to do business with one another. But, they are learning, and make some mistakes.... Assume the UCC governs the following questions (3) to (10). Eric needs bottles for his finished product, and Mark agrees that he can provide them. Eric needs 500 bottles, but they forget to agree on the PRICE of each bottle.

(5) They forget, again--this time as to where the bottles are to be DELIVERED. Is this fatal to their agreement under the UCC? Yes or no? How does the UCC address this? Explain.

Answer 1

UCC allows keeping certain terms open while forming the contract. Price is one of them. Hence it will not affect the contract when Mark and Eric forget to agree on the price. The court will determine a reasonable price at the time of delivery if they have not agreed on price. If either of them is to determine the price, the price can be fixed in good faith. If the price fails to be fixed through the fault of one of the parties, other party can treat the contract as cancelled or fix a reasonable price.

5) Delivery terms are also allowed to be kept open and hence if they forget to mention the place of delivery, it is not fatal to their agreement under UCC. When the delivery terms are not mentioned, delivery is usually done at the seller’s place of business and Eric can take delivery from Mark’s place of business. If Mark does not have a place of business, his residence is used for delivery. If the bottles are located in another place and both of them know the place, delivery is made in that specific place.