Seller called Buyer on the telephone and offered to sell his used stereo. The buyer agreed to buy it ...

Expert Answer

Scenario 1: The Seller is a Merchant and the Buyer is a College Student

Under Common Law:

• Offer and Acceptance: A valid contract typically requires an offer, acceptance, and consideration. In this scenario, the seller made an offer by calling the buyer and offering to sell the used stereo. The buyer accepted the offer without asking about the price, and this constitutes an agreement. The acceptance appears valid under the common law, as it shows mutual assent.
• Lack of Price Information: Under common law, for a contract to be enforceable, the terms need to be sufficiently clear. In this case, the price was not specified. Typically, for the contract to be binding, the price would need to be agreed upon. However, there is an exception for "open price" contracts in the case of goods. In this situation, it might be implied that the price would be reasonable, even if not stated, depending on the nature of the agreement and the context.

Under the Uniform Commercial Code (UCC):

• Sale of Goods: The UCC governs contracts for the sale of goods. Since the seller is a merchant (a professional in selling goods), UCC Article 2 applies. The offer is valid even without a specified price, and the UCC allows for an "open price" contract, meaning the price can be determined later in a reasonable manner.