"Against the backdrop of the principle of freedom of contract, however, a contracting party is at liberty to set the rate and prices of goods it is selling as it behoves the other contracting party to do its proper due diligence before entering into a contract in order to be certain it is making the best business decision."
Sometimes buyers execute contracts with sellers where prices and rates for goods or services are agreed and then the buyers realise the prices agreed on for such good or service are higher than what obtains in the market. At that point, the buyer may attempt to terminate the contract with the seller on the basis of being charged a higher price or try to get damages for same. The principles of contract and termination thereof according to the governing laws of the executed contract will determine the remedies available to the buyer.
A contract is a legally enforceable agreement between two or more parties for goods and services. Contracts can be oral or written though it is generally recommended that contracts be in writing and signed by both parties. A contract is formed when there is an offer to do something, acceptance of that offer, and consideration (the agreed upon exchange between the parties). For example, when a person contracts with a carpenter to build a bed, the carpenter builds a bed in exchange for payment at the agreed upon price. Once the parties have come to an agreement regarding the terms of the contract, they are both legally bound to fulfil their obligations under the contract. Failure of any party to fulfil their contractual obligations exposes such party to liability in a court of law. By virtue of the principle of freedom of contract, parties are free to enter into contracts and determine their content. Together with the principle of sanctity of contracts, this principle constitutes a core pillar of transactional contract law. The parties' freedom relates to both their decision whether and with whom to enter into a contract ("positive" and "negative" party autonomy) and how the contents of that contract should be.
