Contracts

Question 1

What is an offer?

Answer 1

An offer is a manifestation of intent to enter into a contract.

Crated when three elements are present: intent, essential terms, and communication

Question 2

Does the UCC require a price term?

Answer 2

The UCC will fill in a missing price term with a reasonable price term on the basis that this is what the parties truly intended.

UCC WILL NOT fill in a vague term with a reasonable price because the intent of the parties cannot be determined.

Question 3

Can the courts fill in a reasonable price term in CL contracts?

Answer 3

Yes, if there is a reasonable basis for doing so.

Question 4

Do requirement and output contracts require a quantity?

Answer 4

There is a special rule for requirement or output contracts.
(1) These contracts do not need a “set” quantity. A seller and a buyer can agree that the buyer will buy everything the seller makes (output contract) or everything the buyer requires (requirement contract).
(2) The amount sold or requested must be: (a) in good faith, and (b) not “unreasonably disproportionate” to the stated estimate or a
comparable prior output or requirement.

Question 5

Is quantity necessary for contracts that ffall under the UCC?

Answer 5

Yes