QST LA 245 Lecture Notes - Lecture 7: Fax, Exxonmobil
17 Aug 2018
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Open prices under 2-305: the parties may conclude a contract even though they have not settled the price. Under the code, if the parties have not stated one, the price is a reasonable price at the time of delivery. Court uses market value and other comparable sales to determine what a reasonable price would have been. If contract permits buyer or seller to determine the price during contract performance, 2-305 require to do so in good faith. All of the franchises buying from exxon are suing for the higher gas prices because other companies are selling for cheaper, therefore not a price in good faith. Exxon sets the price, the franchises have to buy a certain number of gallons per month, company-operated retail stores pay essentially nothing. Were the prices set in bad faith: look at ucc to resolve this. Price should be fixed in good faith.
