A sheep rancher agreed, in writing, to sell all the wool shorn during the shearing season to a weaver. The contract failed to establish the price and a minimum quantity of wool. After the shearing season, the rancher refused to deliver the wool. The weaver sued the rancher for breach of contract. Under Article 2 of the UCC, will the weaver win?

Answer: Yes, there was a contract between them

Explanation:

A contract is an agreement by two parties to do a task pending on their agreement and terms they conclude on. A breach in contract is where either of the party fail to meet up with the conditions that were agreed upon at the signing of the contract. The Weaver and the rancher signed an agreement, the rancher wants to pull out despite terms of agreement they have had in place, the Weaver suing the rancher will definitely win because there was a contract.

Yes, the weaver should win because under UCC this is considered an output contract.

Explanation:

UCC doesn't require that contracts include all the specific items, sometimes it will accept reasonable or market prices when the price is not specified. For example, the rancher should charge the weaver the normal market price of wool that other ranchers charge.

An output contract requires that a buyer purchases the total production output of the seller, and since that output might change due to different circumstances, the amount of wool per sheep is not fixed, the amount is not specified. But that doesn't mean that the contract doesn't exist. UCC considers the good faith of contracts, and what is most important, both parties agreed upon the contract and signed it.

If one party decides not to perform, they are breaching a valid contract and the other party can sue seeking compensation. It is similar to a request of materials made by a company to a vendor that doesn't include price, the normal market price is used. Or a contract where a farmer commits his total production to a mill, the total might vary due to the weather and other conditions.