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Contract and Commercial Law Act 2017

Sale of goods - Formation of contract - Price

130: Agreement to sell at valuation

You could also call this:

“Rules for selling when someone else sets the price”

If you agree to sell something and let someone else decide the price, there are some rules you need to know.

If you and the buyer agree that another person will set the price, but that person can’t or doesn’t do it, your agreement to sell is not valid. This means you can’t force each other to go through with the sale.

But if the buyer has already taken some or all of the items, they still need to pay a fair price for what they’ve taken.

Sometimes, the person who was supposed to set the price can’t do their job because either you or the buyer stopped them. If this happens, the person who didn’t cause the problem can ask for money from the person who did.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844319.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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129: Fixing contract price, or

"How prices are decided when you buy something"

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131: Stipulations about time, or

"Time limits in contracts are not always strict unless specified"

Part 3 Sale of goods
Formation of contract: Price

130Agreement to sell at valuation

  1. An agreement to sell goods is void if—

  2. the agreement is on the terms that the price is to be fixed by the valuation of a third party; and
    1. the third party cannot or does not make the valuation.

      1. However, if the goods or any part of the goods have been delivered to and appropriated by the buyer, the buyer must pay a reasonable price for the goods or that part of the goods.

      2. If the third party is prevented from making the valuation by the fault of the seller or the buyer, the party not at fault has a right to claim damages against the party who is at fault.

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