Tennessee § 47-2-305 - Open price term.
Full text of Tennessee Tennessee Code Annotated § 47-2-305 — Open price term., with citation guidance and answers to common questions.
§ 47-2-305. Open price term.
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: nothing is said as to price; or the price is left to be agreed by the parties and they fail to agree; or 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. A price to be fixed by the seller or by the buyer means a price for him to fix in good faith. When a price left to be fixed otherwise than by agreement of the parties fails to be fixed through fault of one (1) party the other may at his option treat the contract as cancelled or himself fix a reasonable price. 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. Acts 1963, ch. 81, § 1 (2-305). Prior Tennessee Law: §§ 47-1209, 47-1210. Law Reviews. Restitution on Default and Article Two of the Uniform Commercial Code (Robert J. Nordstrom), 19 Vand. L. Rev. 1143. Cited: Clark v. BP Oil Co., 137 F.3d 386, 1998 FED App. 63P, 1998 U.S. App. LEXIS 2851 (6th Cir. Tenn. 1998).
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 47-2-305
What does Tennessee Code Annotated § 47-2-305 cover?
Section 47-2-305 ("Open price term.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 47-2-305?
A common citation format is "Tennessee Code Annotated § 47-2-305" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 47-2-305 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.