Toys v. Burlington

• Toys leased space from Burlington, with provision for renewal.
• Later, Toys wanted to renew lease, Burlington wanted to charge ‘prevailing rate’ in Mall, disagreement about what ‘prevailing rate’ was.
• Most frequent basis for finding contract was not definite enough is price
• Consideration for option: part of general lease, in which promises went both ways.

• UCC 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…

• Implies that there is a market reference for setting price.
• UCC was designed around commodities transactions–can always find ‘market price’.

Author: international