Q.7 How the price of goods may be determined?
Ans: MEANING OF PRICE OF GOODS [SECTION 2 (10)]
Price means the money consideration for a sale of goods.
MODES OF DETERMINING PRICE [SECTION 9(1)]
There are three modes of determining the price as under:
(i) It may be fixed by the contract; or
(ii) It may be left to be fixed in an agreed manner, or
(iii) It may be determined by the course of dealing between the parties.
Thus, the price need not necessarily be fixed at the time of sale.
Consequences of not Determining the Price In any of the Mode [section 9(2)]
Where the price is not determined in accordance with Section 9(1), the buyer must pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case. It may be noted that a reasonable price need not be market price.
Consequences of hot Fixing Price by Third Party [Section 10(1)]
The agreement to sell goods becomes void if the following two conditions are fulfilled.
(a) If such agreement provides that the price is to be fixed by the valuation of a third party, and
(b) If such third party cannot or does not make such valuation.