Starbucks Coffee contracts with Juan Valdez coffee farms to purchase "all the coffee beans Starbucks needs for the next twelve months." The parties have a(n) ____________ contract.

Question

Quizplus · Accepted Answer

Sometimes, a buyer will agree to buy "all that we need" (or some similar requirement) of a certain good from a particular seller. This agreement is called a requirements contract. Such contracts often were not allowed under common law because the quantity of the goods to be bought or sold was not definite. The UCC allows output and requirements contracts for the sale of goods, as long as the parties deal in good faith and according to reasonable expectations.

Starbucks Coffee Contracts with Juan Valdez Coffee Farms to Purchase