Price Flexibility in Seller-Buyer Transactions: Unfixed and Indeterminable Prices

Exploring the Indeterminable Seller-Buyer Price Relationship

Question

The seller's price to the buyer is not fixed or determinable when:

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

The correct answer is A: When the price is not contingent on some future events.

Explanation: The seller's price to the buyer is usually fixed or determinable in most transactions. However, there may be certain circumstances where the price is not fixed or determinable, and this can create ambiguity and uncertainty for both the buyer and the seller.

Option A correctly identifies one of those circumstances: when the price is not contingent on some future events. This means that the price is subject to change based on future events or circumstances, such as changes in market conditions, fluctuations in commodity prices, or other unforeseen factors that could impact the final price of the product or service being sold.

Option B refers to a specific type of transaction that involves an option to exchange the product for others, but this does not necessarily imply that the price is not fixed or determinable.

Option C refers to a situation where a service or membership fee is not subject to predictable cancellation during the contract period, but this does not directly relate to the price of the product being sold.

Option D refers to payment terms, but this does not necessarily imply that the price is not fixed or determinable. The price can be fixed, but the payment terms can be extended for a substantial period.

Therefore, option A is the correct answer as it specifically refers to circumstances where the price is not fixed or determinable, which can create uncertainty and risk for both the buyer and seller.