Article 2 — Sales · Section 2-309
This section details the default rules surrounding the duration of contracts and notice requirements for termination.
Source: U.C.C. § 2-309
UCC § 2-309 states that unless otherwise agreed, the time for shipment or delivery is a reasonable time; the terms of the contract may establish a duration and may provide for termination by either party upon reasonable notice.
UCC § 2-309 discusses how long contracts for the sale of goods last unless the parties agree otherwise. It requires that, if a party wishes to terminate a contract, they must provide reasonable notice to the other party.
A non-specified period that is based on the circumstances and nature of the transaction.
A communication to inform another party of the intention to terminate or the necessity to take action.
Example 1
If a seller and buyer agree to deliver goods over an unspecified period, the seller must deliver them in a time frame that is generally considered reasonable, given the circumstances.
Example 2
A monthly supply contract can be terminated by either party with 30 days notice, as per the reasonable notice requirement of UCC § 2-309.