Adam offered to buy automobile batteries from Ben. Adam's purchase order was complete with respect to all material terms except price, which was omitted. If Ben accepts Adam's offer, and the price of automobile batteries is well established in the industry, which of the following statements is true?
A) A contract cannot be formed between Adam and Ben if the price is not included.
B) A contract can be formed between Adam and Ben only if it can be proved that the parties intended to enter a contract to discuss the price.
C) A contract can be formed between Adam and Ben, but the price will be treated as a proposed addition to the contract which must be accepted by both parties.
D) A contract can be formed between Adam and Ben even though the price term was omitted.

Question

Quizplus · Accepted Answer

A fixed price is not essential to the creation of a binding sales contract. If a price term is simply omitted, or if the parties agreed to agree on price at a later date but cannot, or if the parties agreed that price would be set by some external agency (like a particular market or trade journal) that fails to set the price, the Code says the price is a reasonable price at the time for delivery.

Adam Offered to Buy Automobile Batteries from Ben