This dispute arose from a purchase agreement between Plaintiff Fischer Imaging Corporation (“Fischer”) and Defendant General Electric Company (“GE”) for the manufacture and purchase of medical imaging devices called Tilt C units. Fischer brought this diversity action in federal district court, seeking a declaratory judgment to determine a reasonable price for the Tilt C units. See 28 U.S.C. §§ 1332(a), 2201. GE filed a counterclaim seeking specific performance of the production requirements contained in the purchase agreement. Fischer timely filed a demand for a jury trial which the district court struck upon GE’s motion. The district court, however, exercised its discretion pursuant to Fed.R.Civ.P. 39(c) and empaneled an advisory jury.
The advisory jury returned a verdict setting the reasonable price at $157,400 per Tilt C unit. Choosing not to follow the advisory jury’s verdict, the district court issued an “Order and Judgment” setting the reasonable price at $122,648 per unit for Tilt C units delivered in 1998 and $126,082 per unit for Tilt C units delivered in 1999, and ordering Fischer to perform its obligations under the contract. Fischer appeals on the sole ground that the district court improperly struck its jury demand. To remedy the alleged error, Fischer seeks a remand directing the district court to instate the advisory jury’s verdict as the judgment in this case. Our jurisdiction arises under 28 U.S.C. § 1291. We reverse and remand for a new trial.
I. Background
On August 29, 1994, the parties entered into an agreement for the sale of Tilt C units. The units are used in a medical imaging product produced by GE. The initial purchase agreement expired on December 31, 1997, but GE retained the unilateral power to extend the term of the agreement for two years. On June 25, 1997, GE provided Fischer with notice of its intent to exercise its option to extend *1168 the agreement. The initial contract contained pricing provisions, but these provisions did not apply to the extended term of the contract. Fischer indicated to GE that it would not order materials or schedule production of the Tilt C units under the extended term of the contract until the parties reached an agreement on the price per unit. The parties attempted unsuccessfully to negotiate a new price. As a result, Fischer filed the instant declaratory action asking the district court to determine a reasonable price for the units under Colo.Rev.Stat. § 4-2-305(1). Under Colorado’s Commercial Code, parties may “conclude a contract for sale even though the price is not settled. In such a case, the price is a reasonable price at the time for delivery....” Colo.Rev.Stat. § 4-2-305(1). GE counterclaimed for specific performance of the extended agreement. The district court struck Fischer’s jury demand, tried the case with an advisory jury, did not follow the advisory jury’s verdict, set the price for the units and ordered Fischer to produce the units according to the terms of the contract.
II. Analysis
At issue in this appeal is whether the Seventh Amendment of the United States Constitution entitles Fischer to a jury determination of a reasonable price under the extended term of the contract for the Tilt C units. Fischer argues that the relief it seeks is legal in nature, requiring a trial by jury if properly requested. In response, GE argues that Fischer’s claims sound in equity and do not accord ^ischer the right to a jury trial. We review de novo the trial court’s decision to Fischer’s jury demand.
See Manning v. United States,
The Seventh Amendment provides that “[i]n suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved.... ” U.S. Const, amend. VII. The Supreme Court has interpreted the Seventh Amendment as requiring trial by jury if the action involves “rights and remedies of the sort traditionally enforced in an action at law, rather than in an action in equity or admiralty.”
Pernell v. Southall Realty,
To resolve whether the right of trial by jury attaches to a particular cause of action, we apply a two-step analysis.
See id.
First, we determine whether the cause of action was tried at law in 1791, or is analogous to such a cause of action.
Markman v. Westview Instr., Inc.,
Fischer’s pursuit of this action under the Declaratory Judgment Act does not alter Fischer’s rights under the Seventh Amendment.
See Manning,
146 at 811. The Declaratory Judgment Act does not create a right to a jury trial, but merely preserves the right where one already exists.
Id.
Declaratory relief may be legal or equitable depending on the “basic nature of the underlying issues.”
United States v. New Mexico,
*1169 A. Nature of the Statutory Action
Applying these principles, we look first to the nature of § 4-2-305, which provides as follows:
(1) The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case the price is a reasonable price at the time for delivery if:
(a) Nothing is said as to price; or
(b) The price is left to be agreed by the parties and they fail to agree ...
Colo.Rev.Stat. § 4-2-305. At the time the Seventh Amendment was adopted no parallel action to § 4-2-305 existed. Indeed, at common law an agreement omitting the price and failing to provide a definite method for ascertaining a price was void and unenforceable.
See Boatright v. Steinite Radio Corp.,
Determining whether a contract action would have historically been tried to a jury is “difficult and even at times impossible.” 5 Arthur L. Corbin, Corbin on Contráete, § 1103 (1964). Generally, breach of-contract actions claiming monetary damages were tried to a jury.
See Chauffeurs, Teamsters, and Helpers Local No. 391 v. Terry,
B. Remedy Sought
The remedy in this case is difficult to pigeonhole into one distinct category. The posture of the case as a declaratory action further complicates the analysis. Fischer argues that the claim is a straightforward one for money damages. The case is not so simple. Prior to filing suit, Fischer refused to perform under the extended term of the contract. As a result, Fischer had yet to suffer a loss when it filed the declaratory action. Therefore, one of the traditional purposes associated with legal relief, compensation for damages does not apply.
See Feltner,
In contrast, GE attempts to characterize the remedy as one of reformation of a contract.
1
Reformation is an “equitable remedy used to reframe written contracts to reflect accurately [the] real agreement between contracting parties when, either through mutual mistake or unilateral mis
*1170
take coupled with actual or equitable fraud by the other party, the writing does not embody the contract as actually made.” Black’s Law Dictionary 1281 (6th ed.1990);
see also Mutual of Omaha Ins. Co. v. Russell,
GE’s argument misses the mark. The current dispute is over the extended term contract, not the original contract. The extended term contract cannot be rewritten to express the parties’ actual intent regarding the price, because the parties failed to reach any agreement as to price. What Fischer asked the district court to do was not to reform the contract to reflect what the parties actually intended, but to set a reasonable price. In order for the district court to do so, Fischer introduced evidence regarding a reasonable price. Fischer introduced the evidence of false assumptions and miscalculations in the original pricing scheme to show that the pricing provisions in the original contract should not just be grafted onto the extended term contract. The introduction of this evidence did not transform the remedy sought into reformation of the contract. 2
In arguing that the remedy should be characterized as reformation or other equitable relief, GE relies heavily on a Nebraska district court case,
Burlington Northern R.R. Co. v. Nebraska Public Power District,
Burlington differs significantly from this case, however, because the contract in Burlington provided a method for amending the contract. Unlike the present case, the parties in Burlington contemplated that a reformation of the contract might be necessary. The contract provided that “unforeseen changes in circumstances in the future might cause the Effective Rate to no longer reflect the parties’ intentions” and thus “the parties desire to provide a procedure for amending” the contract. Id. at 1483. The district court equated these provisions with reformation of the contract. Id. While that analysis may be quite sound, we have no parallel term providing for amendment of the present contract.
The district court’s decision in
Burlington
was also based on the complexity of the task of determining a price.
4
The district court was not only required to determine the “reasonable cost” to the de
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fendant, but was also required to interpret numerous terms in the contract.
5
Id.
The district court characterized the nature of the undertaking as tantamount to “plenary interpretation” of the contract, a task traditionally left to judges.
See id.
(quoting
Markman,
Unlike
Burlington,
our case is not dependent on, nor does it involve, interpreting a plethora of contractual terms. Determining the reasonable price of the Tilt C units may require consideration of the parties’ course of dealing, course of performance, and the fair market value of the goods. 1 J. White and R. Summers, Uniform Commercial Code, § 3-8, (1995). The determination may also require consideration of production costs, including materials and labor.
See Kuss Mach. Tool & Die Co. v. El-Tronics, Inc.,
After considering the parties’ arguments regarding legal versus equitable relief, it is apparent that this case does not fit neatly into either category. In the hopes of resolving the dilemma, we next consider how this case might have come to the court absent declaratory judgment procedures.
See
9 Wright
&
Miller, Federal Practice and Procedure, Civ.2d § 2313. Without a declaratory judgment action, Fischer could have delivered the Tilt C units and, upon GE’s refusal to pay the demanded price, sued GE for breach of contract seeking monetary damages in the amount of a reasonable price for the goods. In such a case, Fischer would have been entitled to have a jury determine damages.
See Terry,
If Fischer failed to .deliver the Tilt C units, GE could cover and sue Fischer for breach of contract, seeking the difference between the contract price, as set by § 4-2-305 as a reasonable price, and the cover price, as well as any incidental or consequential damages associated with effecting cover.
See
Colo.Rev.Stat. § 4-2-712. Such a suit for money damages would be tried to a jury. If GE chose not to cover, GE could sue for breach of contract seeking the difference between the market price at the time of the breach and the contract price, i.e., a reasonable price, plus any consequential or incidental damages.
See
Colo.Rev.Stat. § 4-2-713. Again, this action for money damages would be tried to a jury. Finally, if GE was unable to cover because the goods were unique, GE
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could sue under Colo.Rev.Stat. § 4-2-716 for specific performance for delivery of the Tilt C units. Because specific performance is an equitable remedy, the case would not be tried to a jury. In a suit for specific performance, a determination of a reasonable price would be not necessary to the disposition of the claim.
6
As illustrated above, in all the scenarios where U.C.C. § 2-305 can come into play, the relief sought is legal in nature.
See Terry,
C. Issue for Jury
Having determined that Fischer’s § 4-2-305 statutory action was an action at law, we next consider whether the particular issue was proper for determination by the jury. Specifically, we must decide whether the determination of a reasonable price must be resolved by the jury in order to “preserve the right to a jury’s resolution of the ultimate dispute.”
Markman,
In this case, we can find no precise analogue for this issue at common law because the courts were not in the business of determining a price if the parties failed to include the price term in the agreement.
See Boatright,
A number of courts have submitted the question of a reasonable price under U.C.C. § 2-305, and similar U.C.C. provisions, to the jury, providing further support for the conclusion that determining a reasonable price is properly a jury question.
See Havird Oil Co., Inc. v. Marathon Oil Co., Inc.,
Finally, we look to functional considerations. In actions at law “predominantly factual issues are in most cases allocated to the jury.”
Del Monte Dunes,
*1174 In light of the relevant historical, prece-dential and factual considerations, we conclude that the question of a reasonable price for goods under § 4-2-305 is a question for the jury. Accordingly, the district court erred by striking Fischer’s jury demand.
III. Advisory Jury
Even though the district court concluded that Fischer was not entitled to a jury trial, the district court exercised its discretion under Fed.R.Civ.P. 39(c) and tried the case with an advisory jury. Now that we have concluded that the issue of a reasonable price should have been submitted to the jury, we must determine how the district court should proceed on remand. Fischer does not request a new trial. Instead, Fischer argues that the verdict of the advisory jury should be substituted for the district court’s judgment. We conclude that this case must be remanded for a new trial.
Fischer timely requested a trial by jury, and we hold today that Fischer was entitled under the Seventh Amendment to a trial by jury. An advisory jury is not the equivalent of a Seventh Amendment jury.
See Parklane Hosiery Co. v. Shore,
IV. Conclusion
For the foregoing reasons, the judgment of the district court is REVERSED and the case REMANDED for a NEW TRIAL. 9
Notes
. GE also attempts to characterize the relief as specific performance because a reasonable price under the extended term of the contract has value to Fischer only if the parties perform. Fischer’s claim cannot be characterized as one that seeks specific performance, however, because the record indicates that GE never breached the contract or indicated that it would not perform under the extended term of the contract. Indeed, GE had placed an order for 75 additional Tilt C units prior to the initiation of this lawsuit. Furthermore, GE’s counterclaim for specific performance does not deprive Fischer of its right to a jury trial on any legal claims.
See Dairy Queen v. Wood,
.We also note that in cases involving a unilateral mistake, the mistake must be coupled with some sort of fraud by the other party in order to justify the extraordinary remedy of reformation of the contract. See id. at 344-45. Neither party has alleged misrepresentations or fraud by GE.
. No party cites to, nor could the court find, ' an opinion by any court expressly addressing the precise issue raised in this case, that is, whether a right to a jury attaches under § 2-305 of the U.C.C.
. It took the district court six days of hearings just to clarify the claims at issue in that case.
. For example, the district court would have to interpret contract terms including the '.'Base Rate,” the “Effective Rate,"(which required the construction of a formula set forth in the contract) "reasonable profit, assuming honest and efficient management,” "costs directly related to the services provided by” the plaintiff, "shall neutralize the effects of inflation” and other terms "which have no plain meaning save for the meaning that judicial, construction provides.”
Burlington,
. Although in a suit by the buyer for specific performance of a contract, the seller could file a counterclaim seeking a declaratory judgment to determine a reasonable price for the goods, setting a reasonable price would not be necessary to a determination of whether the buyer was entitled to specific performance. The focus of such an inquiry is the uniqueness of the goods, not the price to be paid for them. See Colo.Rev.Stat. § 4-2-716. The seller's counterclaim in such a case would place the parties in a similar position to the present case, that is, a declaratory judgment to determine a reasonable price. This is so because no duty to pay for the goods would arise until the goods were delivered; therefore, no breach of contract by the buyer would arise until after delivery and after a refusal by the buyer to pay the seller’s invoiced price. Thus, at the time the seller brings the counterclaim, the seller would not have suffered a loss and would be seeking prospective relief. Following our analysis above, such a counterclaim would arise in contract and seek legal relief.
. Quasi-contract requires: (1) the plaintiff to confer a benefit to the defendant; (2) that defendant has knowledge of or acquiesces to; and (3) by allowing the defendant to retain the benefit without payment, inequity would result.
See DCB Const. v. Central City Dev. Co.,
. The U.C.C. does not suggest a different result. The official comment to § 2-201 states that the “trier of fact” determines a reasonable price. Nothing in § 2-305 conflicts with that statement. Section 2-305 does not include the term “by the court” in reference to the setting of a reasonable price. In contrast, the drafters expressly instructed in § 2-302(1) that the court, as a matter of law, determines whether a contract was unconscionable. Thus, where the U.C.C. drafters so intended, they expressly provided that an issue was for
*1174
the court and not the jury. Therefore, under the maxim of statutory construction
expressio unius est exclusio alterius,
we assume that had the drafters intended to include "by the court” in § 2-305, they would have done so. See
United States v. Oberle,
. The respective motions of the parties for leave to file supplemental briefs are hereby GRANTED.
