Under UCC, which statement about open terms is true?

Under UCC, which statement about open terms is true?

• A. Open terms are never allowed.
• B. Open terms can be filled by the court using reasonable standards; price and delivery terms may be supplied.
• C. The contract requires a written price term.
• D. Open terms nullify the contract.

Answer: (B)

Under the UCC, a contract for the sale of goods can be formed even if some terms are left open, because the code includes gap-fillers that let reasonable terms be supplied as part of the agreement. If the price isn’t fixed, the contract can provide that the price will be a reasonable price at the time of delivery. If delivery terms aren’t specified, the UCC provides default rules or allows terms to be determined by customary practice, course of performance, or usage of trade. This approach keeps the deal alive when the parties haven’t nailed down every detail, as long as there’s a clear intent to contract and a practical basis to measure damages or provide a remedy. So the statement that open terms can be filled by reasonable standards, with price and delivery terms supplyable, accurately reflects how the UCC treats open terms. Open terms aren’t forbidden, a price term isn’t required to be written, and open terms don’t nullify a contract.

Under the UCC, a contract for the sale of goods can be formed even if some terms are left open, because the code includes gap-fillers that let reasonable terms be supplied as part of the agreement. If the price isn’t fixed, the contract can provide that the price will be a reasonable price at the time of delivery. If delivery terms aren’t specified, the UCC provides default rules or allows terms to be determined by customary practice, course of performance, or usage of trade. This approach keeps the deal alive when the parties haven’t nailed down every detail, as long as there’s a clear intent to contract and a practical basis to measure damages or provide a remedy. So the statement that open terms can be filled by reasonable standards, with price and delivery terms supplyable, accurately reflects how the UCC treats open terms. Open terms aren’t forbidden, a price term isn’t required to be written, and open terms don’t nullify a contract.