Under the Uniform Commercial Code, if a contract for the sale of goods lacks a price term, the price is determined by what standard?

• A. A reasonable price at the time of delivery
• B. The price last quoted by the seller
• C. The price at the time of contract formation
• D. The average market price during the term

Answer: (A)

When a contract for the sale of goods leaves the price term open, the UCC fills the gap by using a reasonable price at the time of delivery. This open-price rule keeps commercial transactions moving by avoiding failure for indefiniteness; the price is tied to market conditions as performance occurs, which protects both buyer and seller from locking in an outdated or unfair price.

The other methods only apply if the parties have agreed to them or if the contract specifies a particular mechanism (such as a price fixed by the seller or a price indexed to a quoted market price). Absent such an agreement, the default is a reasonable price at delivery, aligning the price with the value of the goods in the market when performance is due.