Q.15 How price is determined?
Ans: (1) The price may be expressly stated in the contract. This is primarily what is intended to be done. The parties are free to fix any price like, and the court will not embark on an investigation as to be adequacy of the price. Thus a man may sell at any price he likes and to under – sell his trade rivals he may offer goods in a loss or a manufacturer may sell goods to a whole seller on the condition that they shall not be sold on less than of certain price. But that condition does not bind a subsequent buyer, even with notice for there is no privity between him and the original seller. In the case, however, of patented goods the sub buyer may be bound by such a condition, it he has notice of it.
(2) The contract may provide for the manner in which the price is to be fixed. The agreement may be to pay as much for the goods as others pay. No sale will be made if the price is agreed to be whatever sum the seller be offered by any third party, nor if it is left to be fixed only by one of the contracting parties.
(3) Where the price is not expressed in contract nor in any provision made for in determination it may be determined by course o dealings between the prices.
(4) Where nothing is said by the parties regarding price, the Law implies, in case the contract is executed and the goods sold are accepted that the buyer agrees to pay a reasonable price and where there is market price for the goods, that may be a reasonable price,
(5) The price may also be left to be fixed by the valuation of third party. Provided he accepts the duty and performs it. But if the third party fails to make the valuation the agreement becomes void. If in pursuance of the contract, goods have been delivered by the seller and accepted by the buyer, one of the prices prevent the third party, from making the valuation he would be liable to pay damages to the other contracting party.