Where the price of a contract for the sale of goods is to be fixed or determined by a third party valuation and the third party fails to discharge this duty, the contract is to be

Answer 1

deemed voidable at the option of either party. In such a situation, the parties may choose to rescind the contract and return to their original positions before the contract was entered into.

Alternatively, the parties may agree to a new method of determining the price of the goods, such as by negotiation or arbitration. It is important for parties to specify in their contract what will happen if the third party fails to determine the price, to avoid uncertainty and potential disputes in the future.