§ 554.2305 — Open price term

Iowa § 554.2305

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. The parties if they so intend can conclude a contract for sale even though the price is
not settled. In such a case the price is a reasonable price at the time for delivery if
a. nothing is said as to price; or
b. the price is left to be agreed by the parties and they fail to agree; or
c. the price is to be fixed in terms of some agreed market or other standard as set or
recorded by a third person or agency and it is not so set or recorded.
2. A price to be fixed by the seller or by the buyer means a price for that party to fix in
good faith.
3. When a price left to be fixed otherwise than by agreement of the parties fails to be fixed
through fault of one party the other may at that party’s option treat the contract as canceled
or fix a reasonable price.
4. Where, however, the parties intend not to be bound unless the price be fixed or agreed
and it is not fixed or agreed there is no contract. In such a case the buyer must return any
goods already received or if unable so to do must pay their reasonable value at the time of
delivery and the seller must return any portion of the price paid on account.

Legislative History

[C24, 27, 31, 35, 39, §9938, 9939; C46, 50, 54, 58, 62, §554.10, 554.11; C66, 71, 73, 75, 77, 79, 81, §554.2305]