Requirements Contracts for the Sale of Goods | Practical Law

Requirements Contracts for the Sale of Goods | Practical Law

This Practice Note discusses requirements contracts under Article 2 of the Uniform Commercial Code (UCC), including mutuality of obligation, exclusivity, good faith, and reasonableness requirements. In a requirements contract, the buyer must purchase its requirements of goods exclusively from the seller. This differs from an output contract in which the buyer must purchase the seller's entire output of the goods.

Requirements Contracts for the Sale of Goods

Practical Law Practice Note 4-519-4760 (Approx. 12 pages)

Requirements Contracts for the Sale of Goods

by Judy Calton, formerly of Honigman Miller Schwartz and Cohn LLP, and Daniel Linna Jr., Michigan State University College of Law, with Practical Law Commercial Transactions
Maintained • USA (National/Federal)
This Practice Note discusses requirements contracts under Article 2 of the Uniform Commercial Code (UCC), including mutuality of obligation, exclusivity, good faith, and reasonableness requirements. In a requirements contract, the buyer must purchase its requirements of goods exclusively from the seller. This differs from an output contract in which the buyer must purchase the seller's entire output of the goods.