You might be wondering…

• “Is it enough to say we’ll decide the price later?”

• “Can the price be set by an expert?”

• “What wording will actually stand up in court?”

Clients often ask me…

• “Can we state that the price equals the market value as determined by an expert opinion?”

• “Is it acceptable to refer to the seller’s price list?”

• “What if we want the price tied to future developments (e.g., stock exchange, index)?”

Legal explanation (Section 2080 Civil Code)

The Civil Code states: “The purchase price is deemed sufficiently certain if at least the method of its determination is agreed.”
This means you don’t have to state a fixed number, but you must clearly describe how the price will be reached.

• References to objective criteria are valid (e.g., market value, expert appraisal).

• A vague reference such as “by agreement” is not enough.

• It is permissible to tie the price to price lists, indices, stock exchange prices, or costs.

Biggest risks and common mistakes

• Uncertain wording: “The price will be determined later” = invalid contract.

• Dependence on one party’s will: “The price will be determined by the seller” = one-sided and invalid.

• Lack of mechanism: Referring only to a future agreement is insufficient.

Sample clauses on price determination

1. Based on expert opinion
“The purchase price will be determined based on an expert appraisal by an expert appointed by [the Chamber of Experts / both parties jointly].”

2. According to seller’s price list
“The purchase price equals the price stated in the seller’s valid price list effective on the date of delivery.”

3. According to stock index
“The purchase price equals the average price of commodity XY on the [Prague/European] stock exchange on the contract date.”

4. Based on costs with a margin
“The purchase price is based on the seller’s production costs plus a 10 % margin.”

5. Combination of fixed and variable component
“The purchase price is CZK 1,000,000 plus an amount corresponding to the increase in the price of input material according to the Czech Statistical Office index.”

Real-life example

A company signed a purchase contract for steel deliveries with wording: “The price will be determined by agreement according to the current market situation.” When a dispute arose, the court ruled the contract invalid regarding the price clause because the method was not sufficiently clear. If the price had been tied, for example, to the steel product index, the contract would have been upheld.

Why DIY contracts are risky

Free templates often use general phrases that will not withstand legal scrutiny. Precise wording of the method of price determination is key; without it, you risk invalidating the entire contract.

Lawyer’s recommendation

If you don’t want to state a fixed amount, always describe the mechanism precisely.

• Use objective criteria (index, expert appraisal).

• Don’t leave the decision solely to one party.

• Consider future changes (inflation clauses, price adjustment clauses).

Checklist:

• Is the method of price determination clearly described?

• Is the mechanism objective and fair to both parties?

• Have you avoided referring only to future agreement?

FAQ

Can we just say “by agreement”?
No, that is uncertain and invalid.

Is it okay to have the price set by an expert?
Yes, that is a typical and valid method.

What if we want the price tied to the euro exchange rate?
That’s possible—for example, by stating that the price equals the conversion according to the Czech National Bank exchange rate on a specific date.