Under which body of law is a requirements contract acceptable?

• A. Common law
• B. Article 2 of the UCC
• C. Article 9 of the UCC
• D. International law

Answer: (B)

Open-ended quantity provisions for a sale of goods are permitted under Article 2 of the Uniform Commercial Code. A requirements contract has the buyer agreeing to purchase all of its needs for a good from a seller during the term, and the seller agreeing to supply those needs. The quantity isn’t fixed in advance; it’s measured by the buyer’s actual requirements during the period. The contract stays enforceable as long as the parties act in good faith and the quantity isn’t unreasonably disproportionate to any stated estimate or to prior actual consumption. This flexibility reflects the practical handling of goods contracts, allowing long-term arrangements without locking in a fixed quantity. By contrast, common law tends to demand more definite quantities, while Article 9 governs secured transactions, and international law isn’t the governing framework for a domestic goods contract.