5 Seller and buyer execute a contract for 500 jogging shoes

5. Seller and buyer execute a contract for 500 jogging shoes. The contract has all the basic terms, except the parties “agree to agree” on the price per shoe at a later date. a. Is there a contract? b. If so, what happens if they later fail to agree? c. Would your answer change if Seller says, “I need at least $50 per set of shoes,” and Buyer accepts? Explain

Solution

a. It would be deemed as a contract as it meets the essential elements of contract as both the paties are in agreement and the seller has executed obligation in exchange for consideration.Mere statements of assent or hope do not constitute an offer or contract.

b. Depending on the terms of the contract if both of them want to end the contract at a later date they can do so. However if either of them wants to end the contract or fail to agree, the other party can take legal actions and claim damages accordingly.

c. The answer would still remain the same as the seller has specified the minimum amount he excepts per pair of shoes.