Both in the contract of sale and in the contract of rent there must be established a price (price of the thing being sold or the rental amount) and the price must certain. The law however provides that the parties may nominate a third person to fix the price. If they do so, they will usually be bound by the price fixed by the third party as such is one of the risks assumed by the parties themselves.

In the light of the above statement discuss the decision in Proud Investments (Pty) Ltdv Lanchem International (Pty)Ltd1991 3 SA 738 (A) and Genac Properties JHB (Pty) Ltdv NBC Administrators CC1992 (1) SA 566 (A). Discuss the decisions separately.

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