Output and Requirements Contracts

Output and requirements contracts are enforceable if made in good faith without unreasonably disproportionate demands.

Related UCC: Goods & Sales rules

• Warranties: ExpressExpress warranties arise from affirmations, descriptions, or samples that form part of the basis of the bargain.
• Warranties: Implied MerchantabilityMerchantability requires goods be fit for ordinary purposes.
• Warranties: Fitness for Particular PurposeFitness warranties arise when a seller knows buyer’s purpose and reliance.
• Disclaimer of WarrantiesDisclaimers must be conspicuous and, for merchantability, must mention “merchantability.”
• Installment Contracts (UCC)Installment contracts require substantial impairment to justify rejection of an installment.
• Risk of Loss: Noncarrier CasesFor noncarrier sales, risk shifts upon tender of delivery.
• Risk of Loss: Carrier CasesFor shipment contracts, risk shifts when goods are delivered to the carrier.
• Identified Goods Loss RuleIf identified goods are destroyed without fault before risk passes, the contract is avoided.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.