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California Commercial Code Section 2305

Legal Research Home > California Lawyer > Commercial Code > California Commercial Code Section 2305

(1) The parties if they so intend can conclude a contract for
sale even though the price is not settled.  In such a case the price
is a reasonable price at the time for delivery if
   (a) Nothing is said as to price; or
   (b) The price is left to be agreed by the parties and they fail to
agree; or
   (c) The price is to be fixed in terms of some agreed market or
other standard as set or recorded by a third person or agency and it
is not so set or recorded.
   (2) A price to be fixed by the seller or by the buyer means a
price for him to fix in good faith.
   (3) When a price left to be fixed otherwise than by agreement of
the parties fails to be fixed through fault of one party the other
may at his option treat the contract as canceled or himself fix a
reasonable price.
   (4) Where, however, the parties intend not to be bound unless the
price be fixed or agreed and it is not fixed or agreed there is no
contract.  In such a case the buyer must return any goods already
received or if unable so to do must pay their reasonable value at the
time of delivery and the seller must return any portion of the price
paid on account.

Last modified: January 12, 2009