MindTap: Worksheet 14.2: The Formation of Sales and Lease Contracts

What is the one requirement that is NOT necessary for a writing (or electronic record) to be sufficient to satisfy the UCC's statute of frauds?

a notary public's signature

Select the words the complete each of the major differences between contracts under the common law and the UCC. 1. Contract Terms 2. Acceptance 3. Contract Modification 4. Irrevocable Offers 5. Statute of Frauds Requirements

1. Common Law: Contract must contain all material terms. UCC: Open terms acceptable if parties intended to form a contract, but the contract is not enforceable beyond the quantity term. 2. Common Law: Mirror image rule applies. If additional terms are added in acceptance, a counter-offer is created. UCC: Additional terms will not negate acceptance unless acceptance is expressly conditioned on assent to the additional terms. 3. Common Law: Modification requires consideration. UCC: Modification does not require consideration. 4. Common Law: Option contracts (with consideration). UCC: Merchants' firm offers (without consideration). 5. Common Law: All material terms must be included in the writing. UCC: Writing is required only for sale of goods priced at $500 or more, but the contract is not enforceable beyond the quantity specified.

What is NOT one of the requirements for a merchant's firm offer?

The offer must state the date for all future shipments.

Three of the most common open terms for which the UCC provides numerous provisions to fill the gaps in a contract are: (select all that apply)

Delivery Payment Price

A buyer promises to purchase everything he or she needs, so the promise constitutes a requirements contract.

False

Output and requirements contracts are basically the same thing.

False

Match the left-hand words to their appropriate definitions on the right-hand side.

Seasonably: Within a specified time period if no period is specified, within a reasonable time. Requirements contract: An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires. Output contract: An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces. Firm offer: An offer (by a merchant) that is irrevocable without consideration for a period of time (not longer than three months). A firm offer by a merchant must be in writing and must be signed by the offeror.

Match the left-hand words to their appropriate definitions on the right-hand side.

Usage of trade: Any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that will be observed with respect the transaction in question. Fully integrated contract: When a contract completely sets forth all the terms and conditions agreed to by the parties and is intended as a final statement of their agreement. Course of performance: The conduct that occurs under the terms of a particular agreement; such conduct indicates what the parties to an agreement intended it to mean. Course of dealing: Prior conduct between parties to a contract that establishes a common basis for their understanding.

The UCC provides rules of construction for interpreting contracts. When the court considers a construction unreasonable, the UCC establishes the following order of priority. Which of the following expresses the correct order of priority?

express terms, course of performance, course of dealing, usage of trade

The following are times when additional terms do not become part of a contract: 1) The original offer _____ acceptance to its terms; 2) The new or changed terms _____ the contract; 3) The offeror _____ to the new or changed terms within _____.

expressly limited; materially alter; objects; a reasonable period of time

When a court determines that a contract was unconscionable at the time that it was made, the UCC allows all of the following EXCEPT which one:

make the parties go through with the contract no matter what

Under the UCC, a contract that contains open terms will be:

valid if the parties intended to form a contract and there is a good basis for a court to grant a remedy