Art. 1473. The fixing of the price can never be left to the discretion of one of the contracting parties. However, if the price fixed by one of the parties is accepted by the other, the sale is perfected. (Civil Code)


Why is the fixing of price by one of the contracting parties not allowed?

 If consent is essential to a contract of sale, the determination of the price cannot be left to the discretion of one of the contracting parties; otherwise, it cannot be said that the other party consented to a price he did not and could not possible know. (Hector De Leon, Law on Sales)

The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (Art. 1308, CC)


When is a sale perfected even when the fixing of the price is left to the discretion of one of the contracting parties?

Where the price is fixed by one of party and is accepted by the other, the sale is perfected because there is a true meeting of minds upon the price. The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. (Art. 1475, CC)