Under the Sale of Goods Act, 1930, where there is an agreement to sell goods on the terms that the…

Section 10(1) of the Sale of Goods Act, 1930 provides that where the price is to be fixed by a third party's valuation and the third party cannot or does not make it, the agreement is thereby avoided; if goods have been delivered and appropriated, the buyer must pay a reasonable price for them. Hence "the agreement is avoided", which is the statutory word, rather than void or voidable.