Joiner Industries agrees to sell to Browning 500 bolts for $1.00 each. After the first 250 bolts are produced, Joiner realizes that they severely under-priced the bolts and that if they continued to make and to sell the additional 250 bolts at the agreed upon price, they would lose a lot of money and most likely go out of business. They approached Browning with their dilemma and requested that they increase the price per bolt to $1.50 each for the entire contract. Browning agreed. According to the UCC which statement below is correct about the modification of the terms of the contract?

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a contract for the sale of goods can be modified without the need for additional consideration if both parties agree to the modification and the modification is made in good faith. This is a departure from the general common law rule that requires consideration for contract modifications. In this scenario, since both parties agreed to the modification and assuming it was made in good faith, the modification would be valid under the UCC.

Joiner Industries Agrees to Sell to Browning 500 Bolts for $1.00