Article 2 — Sales · Section 2-306
This section regulates the quantity and output enforceability in contracts for the sale of goods, ensuring fairness in agreements between parties.
Source: U.C.C. § 2-306
A contract for the sale of goods which provides for requirements or output may not fail for lack of a stated quantity. Such a contract imposes an obligation on the seller to deliver, and the buyer to accept, the quantity of goods that are demanded by the buyer in good faith, subject to stated minimums.
UCC § 2-306 allows parties to enter into contracts without specifying an exact quantity. Instead, the buyer can demand goods as needed, with the seller required to fulfill those demands in good faith, ensuring fairness in supply.
A contract where a buyer agrees to purchase all or a certain percentage of their requirements for goods from a seller.
A contract in which a seller agrees to sell all or a portion of their production to a buyer.
Example 1
A bakery enters into a contract with a flour supplier for 'as much flour as needed' for the bakery's production, which obligates the supplier to fulfill their requests in good faith.
Example 2
A farmer agrees to sell all the corn produced in a season to a local grocery store, committing to provide whatever quantity is harvested.