Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1.The contract contained a provision that 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:

Question

Quizplus · Accepted Answer

The contract contained a provision that required all modifications to be written and signed by the company presidents. Therefore, any oral agreement between the parties would not be valid under the contract. The modification should have been in writing, and since it was not, NSB would likely win the lawsuit. The lack of new consideration or the UCC's application is not relevant in this case because the contract explicitly requires written modifications.

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