There are many contracts that exist in business transactions; one of these is a contract price that determines the price at which a seller sells his or her goods and a buyer buys the seller’s goods. Both buyer and seller in a business transaction agree upon the contract price.
A formal legal promise, the contract price binds both selling and buying entities to the price both agreed to. If one entity makes a breach of promise, the other entity may bring charges against the reneging party. Because it is a material term in a contract, the contract price can be the basis upon which the forsaken party may sue for breach of contract. A breach of promise with regards to a contract price can proceed to court trial for the plaintiff to claim damages.
In any business transaction, a contract is made between the seller and the buyer with regards to the quantity, quality, and price of the goods sold. If a price is not explicitly stated in the legal document, the contract cannot be considered valid and cannot be upheld in a court of law. A breach of promise or the reneging of a contract price is the result of the seller’s inability to sell at the agreed price or the buyer’s inability to buy at the agreed price. Therefore, either party may file a lawsuit against the other in order to claim damages, the costs that a party has incurred as a result of the failure of the other to comply with the contract price. A party seeking damages in court does so in order to restore the original situation of the party before a breach of promise occurred.