Contracts Flashcards
Can a requirements contract be assigned?
Generally, the right to receive goods under a requirements contract is not assignable because the obligor’s duties could change significantly. However, the UCC allows the assignment of requirements contracts if the assignee acts in good faith not to alter the terms of the contract.
In writing and signed by the parties, X agrees to sell Y any quantity of widgets that Y desired at a price of $5 per widget, would this be a binding contract?
No. This is not a binding contract because it was illusory. An agreement to buy only what is desired is not consideration. Moreover, absent some quantity limitation, a court would probably find the agreement too vague.
What does F.O.B. mean?
It means Free On Board. It is a delivery term under the UCC. It obligates the seller to get the goods to the location indicated after the term (i.e., FOB seller’s place).
How is risk of loss treated in a carrier case?
There are two types: shipment and destination.
Shipment (FOB seller’s place): the risk of loss passes to the buyer when the goods are delivered to the carrier.
Destination (FOB buyer’s place or another place): the risk of loss passes to the buyer when the goods are tendered to the buyer at the destination.
If offers with identical prices cross in the mail, is there a valid contract when both parties receive said offers?
No, there is no requisite mutual assent absent an acceptance. One of the parties must manifest acceptance of the terms of the offer.
