A PYMNTS Company

Unilateral Price Fixing

By  |  February 13, 2018

By Ernesto Rengifo García (Universidad Externado de Colombia)

This paper seeks to challenge the traditional solution offered against unilateral price fixing by a party, it is the effect of a non-existent contract or avoidable contract by absence of price. The problem, as will be shown, is not actually made by who determines the price (if one party or both), but to clarify the criteria under which to proceed to make that determination. Such criteria should follow the model of behavior from Roman law arbitrium boni viri, that requires a party behavior and judgment characteristics of a righteous man. Having thus proceeded, the contract is binding and the court may intervene in the event that there has been abuse in pricing. So while the old system solution is the voidance, the new solution should be the concept of abuse.

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