Contract with an Unascertainable Price: Beware the Unseen Trap

A is the owner of a rare book. B offers to purchase the book for a 'price to be determined by an expert'. A agrees, not knowing the current market value. The expert assesses the book's value to be ₹2 lakhs. Can B now rescind the contract, or is A bound by the expert's valuation?

Most students get this wrong. They'll say B can rescind, citing 'unascertainable' price as a condition that fails. However, think again. This deal isn't about the price, but the method of price determination. The expert's valuation is now a part of the contract due to the 'price to be determined' clause. Don't be fooled by the seeming ambiguity. This is a common trap that catches even the best students off guard.