A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications. Because teak wood is difficult to obtain, the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it. Which of the following is correct?
A) Although the price is somewhat unclear, the parties have entered into a contract.
B) This is an agreement to agree, and is not binding.
C) This agreement fails for indefiniteness.
D) The carpenter is bound by the agreement, but not the customer.

Question

Quizplus · Accepted Answer

The agreement between the customer and the carpenter is considered a contract despite the price of the wood being uncertain at the time of the agreement, as the method for determining the price (cost of the wood plus $175) is clear, making the contract enforceable.

A Customer Requested a Price from a Carpenter on a Teak