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N Cal Attorney
N Cal Attorney, Attorney
Category: Business Law
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Experience:  Since 1983
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I have another question for you. If that is ok. It is about

Resolved Question:

I have another question for you. If that is ok. It is about something different.

Debate the correctness of the decision of the court in the case of Davis v. General Foods Corp. (1937)

Submitted: 8 years ago.
Category: Business Law
Expert:  N Cal Attorney replied 8 years ago.
Holding: Where the buyer retains an unlimited right to determine the
price of goods, and the seller acts relying upon the good faith and
sense of fairness of the buyer to provide reasonable value for the
goods, the courts cannot enforce a payment by the buyer.

The holding is wrong.
The buyer retaining an unlimited right to set the price renders the contract illusory and the seller has the right to sue based on the unjust enrichment of the buyer. Seller can sue for money had and received.

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