Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.2840


190.2840 Fixed-Price Contract—Open-Ended Terms. A contract may qualify as being for a fixed price even if one or more terms are left open. Under the Uniform Commercial Code (U.C.C.), a contract for the sale of goods is enforceable even though one or more terms is left open where parties intend to make an agreement and there is a reasonably certain basis for giving an appropriate remedy. (Cal. U.C.C. section 2204(3).) Where the quantity of property to be purchased and sold and/or the time for delivery cannot be determined from the agreement, however, it is too indefinite to fashion a remedy. Such a contract does not qualify for the exemption. 12/19/91.