Under which body of law is a requirements contract acceptable?

• A. Common law
• B. UCC Article 2
• C. Restatement of Contracts
• D. UCC Article 9

Answer: (B)

A requirements contract is a sale-of-goods arrangement that the UCC specifically recognizes. Under Article 2, contracts for the sale of goods can include a buyer’s promise to purchase all of its needs for a given good from a single seller for a period of time. The quantity is not fixed in advance; instead it’s measured by the buyer’s actual requirements, and the contract must be implemented in good faith. This flexibility is precisely what Article 2—through its rules on output and requirements contracts—allows.

That’s why this body of law is the correct one. The common-law framework governs contracts generally but doesn’t authorize these quantity-measured-for-need arrangements as a standard mechanism in the way the UCC does. The Restatement of Contracts covers general contract principles but doesn’t provide the specific structure for requirements contracts. UCC Article 9 deals with secured transactions, not the sale of goods.