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Mid-American Oil Had a Contract with NSB Company to Supply

Question 37

Multiple Choice

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1.The contract contained a provision which required all modifications to be written and signed by the company presidents.In early August,an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil;one in September and the second one in December.By September 30,when only 500 gallons had been delivered,NSB sued.The likely outcome of this lawsuit is:


A) NSB wins because the modification was not supported by new consideration.
B) NSB wins because the modification has to be in writing.
C) Mid-American Oil wins because the UCC governs this case and no new consideration is required.
D) Mid-American Oil wins because new consideration was present.

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