Asked by Frank pelicano on Jul 14, 2024
Verified
Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table. Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs, and he will now need at least $75 a table. Albert agrees, because he needs the tables for his special sale. The modified contract is enforceable even though Albert isn't getting any new consideration, so long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.
Good Faith
A sincere intention to deal fairly with others, without taking advantage of them.
Modified Contract
An agreement that has been legally amended or changed from its original terms by mutual consent of the parties involved.
- Understand the Uniform Commercial Code's method for modifying contracts, particularly the significance of consideration.
Verified Answer
SA
Syafiq AwzaiJul 19, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), which governs contracts for the sale of goods in the United States, a modification of a contract for the sale of goods does not require consideration if both parties agree to the modification, the modification is made in good faith, and, if the contract as modified falls within the statute of frauds, the modification is in writing.
Learning Objectives
- Understand the Uniform Commercial Code's method for modifying contracts, particularly the significance of consideration.