In an agreement to sell the goods on the terms that the price is to be fixed by the valuation of a…

Under section 10(1), an agreement relying on a third party's valuation is avoided if that party cannot or does not make the valuation. Neither party can substitute its own valuation under the existing arrangement. The proviso requires a reasonable price for goods already delivered to and appropriated by the buyer; section 10(2) permits damages where one party wrongfully prevents valuation. The parties remain free to make a fresh agreement.