Spot Price Law and Legal Definition

Spot price is the price at which a physical commodity for immediate delivery is selling at a given time and place. It indicates a price at which a refiner or distributor will sell to those purchasers qualified by contract or custom to buy quantity amounts at wholesale rates. The spot price may vary from day to day and is within the discretion of the seller as to amount, the essence of seller's agreement being that he will not sell to different jobbers at different prices. Competition in the industry is relied upon to level the spot price among producers. [Warren v. Skelly Oil Co., 235 F.2d 722 (10th Cir. N.M. 1956)].