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17 March, 14:33

Pip owns Great Expectations, a trendy restaurant in Manhattan. He enters into a contract with Estella, who makes and sells pastries. The contract states that Estella will "supply all of Great Expectation's needs" for pastries for the next year. Is this contract enforceable?

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  1. 17 March, 15:58
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    Yes this is an enforceable requirements contract.

    Explanation:

    UCC states that some parts of the contract might be missing and still the contracts can be enforceable specially between merchants or businesses. In this case, this is a requirements contract where Estella agrees to provide all the pastries that Pip may need for the restaurant.

    In this case, the price of the goods (pastries) should be the normal selling price or market price. Generally requirements contracts last a relatively considerable time, sometimes many years even. So the price of the goods might vary due to changes in costs, rising inflation, etc., but the contracts are still valid.

    UCC rules are applied differently to contracts between ordinary individuals than contracts between merchants or businesses, because this are normal day to day activities for them.
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