Question

Seller agrees to supply all gasoline fire needs for the next year three dollars per gallon. After three months the price of gas falls to 233 per gallon. Buyer refuses to keep buying from seller unless the seller lowers the price. Seller agrees to months later the average price of gas goes up to $3.50 per gallon. Seller asked buyer to agree to the price range, but the buyer refuses which of the following is true
A. Buyer must pay three dollars per gallon for the rest the year
B. buyer must pay $2.33 per gallon for the rest of the year
C. Buyer must pay $3.50 per gallon for the rest of the year
D. Seller can legally refuse to supply by with any more gasoline for the rest of the year

Answer 1

Answer:

B. buyer must pay $2.33 per gallon for the rest of the year.

Explanation:

The correct answer is B. The seller agrees to supply gasoline for next year at $3 per gallon, the buyer agreed to it. When the gasoline prices declined the buyer insisted to reduce price and seller agreed to it. When the prices rise again the seller asked to raise price but buyer refused. Buyer cannot terminate the contract instead it has to continue buying at $2.33 per gallon if the seller is agreed to sell on this price for the rest of the year.