498. Effect of contractual provision for valuation.

An agreement under which property is to be transferred at a 'fair price' or at a 'reasonable valuation' is not void for uncertainty, and the court may decree specific performance of such an agreement and order such inquiries as may be necessary to ascertain the fair price1.

Where parties have agreed to transfer property at a price to be fixed by a valuer or valuers appointed by the parties and the valuation machinery breaks down2, a fundamental question of construction is whether the prescribed mode of ascertaining the price is an essential term of the contract or whether the mode