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UCC Contracts QUESTION #5843
Question 1
A Buyer agrees to buy 'all the gasoline I need for my fleet' from a Seller for one year. Is this a valid contract?
  • No, it is illusory because the quantity is indefinite.
  • No, because it lacks a price term.
  • Yes, it is a valid requirements contract.✔️
  • Yes, but only if the Buyer specifies a maximum amount.
Correct Answer Explanation
UCC §2-306 validates requirements and output contracts despite the indefinite quantity, provided the parties act in good faith.