If a contract for the sale of goods omits a price term, the court under the UCC will:

• A. A Set the price at the time of contract
• B. B Set the price at the time of delivery as a reasonable price
• C. C Allow the seller to set whichever price it prefers
• D. D Require evidence of a market price at the time of contract

Answer: (B)

When a sale of goods contract leaves out a price term, the UCC fills the gap by using a reasonable price at the time of delivery. This keeps the contract enforceable even though the parties didn’t fix a price, as long as they intended to enter into a deal. The price isn’t locked in at the moment of contract; instead, it’s determined based on what would be reasonable given the circumstances when the goods are delivered. That reasonableness can reflect the going market price for similar goods at delivery, along with other relevant factors.

This approach explains why the price will be set as a reasonable price at delivery. It prevents a missing-price contract from collapsing due to a term the parties simply omitted, while still protecting both sides by tying the price to actual conditions at the time of performance. The alternative of fixing a price at the time of contract would impose a term that wasn’t agreed upon, and letting the seller unilaterally set any price would undermine the contract’s mutuality. Requiring a market price at the contract time would also misstate the UCC rule, which looks to a reasonable price at delivery rather than a fixed market price at contract.