Ryan enters into a contract with Dave,the neighborhood grocer,to supply fresh vegetables daily.After four months,the grocery store expands its business considerably and attracts customers from the neighboring areas as well.As a result,Dave demands that Ryan triple his supply as he cannot keep up with the demand.Which of the following will apply in determining the amount that can be supplied in such circumstances?
A)Rule of reasonable price
B)Rule of requirements
C)Rule of needs
D)Rule of good faith

Question

Quizplus · Accepted Answer

In determining the quantity of goods to be produced or taken pursuant to an output or needs contract,the rule of good faith applies.Thus,no quantity can be demanded or taken that is unreasonably disproportionate to any stated estimate in the contract or to "normal" prior output or requirements if no estimate is stated.

Ryan Enters into a Contract with Dave,the Neighborhood Grocer,to Supply