Final answer:
If a contract lacks a specific purchase price or payment method, it must establish how to determine these factors; imperfect information can make price agreement difficult, but sellers can offer warranties, return policies, and clear communication to reassure buyers.
Step-by-step explanation:
If no definite purchase price or method of payment exists in a contract, the contract must establish a way to determine these missing terms or it may be considered incomplete and potentially unenforceable. In scenarios where imperfect information exists, it can be challenging for buyers and sellers to agree on a price. This is because both parties lack complete data that would influence the valuation of the goods or services in question.
To counteract this, a seller could
- provide warranties or guarantees,
- offer return policies,
- provide detailed product descriptions and transparent communication
about the goods to foster trust with the potential buyer. Furthermore, methods such as price adjustments in future transactions can be predetermined in the contract to accommodate for the imperfect information presiding at the time of agreement.