Asked by Alanna Cooperman on May 27, 2024
Verified
James owns Great Expectations,a trendy restaurant in Manhattan.He enters into a contract with Mary,who makes and sells pastries.The contract states that Mary will "supply all of Great Expectation's needs" for pastries for the next year.Is this contract enforceable?
A) Yes,because this is a requirements contract.
B) Yes,but only if James buys all of the pastries produced by Mary in the next year.
C) No,because the promise fails to specify the quantity of goods to be purchased.
D) No,because James might not need any pastries in the next year.
Requirements Contract
A type of contract in which one party agrees to purchase all of its needs for a particular good or service from the other party.
Enforceable
Capable of being imposed or upheld by legal process, indicating that an agreement or law can be compelled to be obeyed or carried out.
- Understand the theory and varieties of agreements suggested by the consideration offered.
Verified Answer
GM
Gabriela MonserratJun 02, 2024
Final Answer :
A
Explanation :
Contracts that promise to supply all the requirements of another party's needs for a commodity are called requirements contract.These contracts are valid and enforceable agreements.
Learning Objectives
- Understand the theory and varieties of agreements suggested by the consideration offered.