18 Questions
What are the acceptable means of payment that the buyer can use in a commercial transaction?
Cash or credit card
If the seller insists on cash payment, what must be provided to the buyer?
A reasonable time to obtain cash
Where does the buyer normally take delivery if no delivery terms are specified?
Buyer's place of business
When no quantity is specified in a contract, what is the usual outcome according to the text?
No contract is formed
Under the UCC, what are the two exceptions to the rule when quantity is omitted in a contract?
Requirements Contract and Output Contract
When no time or date for delivery is specified, who imposes a reasonable time for delivery?
Court
What happens if the quantity of goods is an open term in a contract?
The parties must expressly state the quantity of goods.
In case of an open price in a contract, what does the court do if the buyer or seller was supposed to set the price?
The court determines a reasonable price at the time of delivery.
What can happen if payment terms are omitted in a contract according to the UCC?
Payment is due at the time and place where the buyer receives the goods.
If a party fails to set the price in a contract, what rights does the other party have?
The right to set a reasonable price.
What is one possible consequence of having too many open terms in a contract?
Potential legal intervention declaring no contract formation.
What must a party do if assigned the responsibility to set the price in a contract?
Set the price in good faith.
According to the UCC, when do its provisions come into play in a sales contract?
When parties fail to establish any terms in their contract.
In a sales contract, what is the significance of the phrase 'Unless the parties agree otherwise' often used in UCC provisions?
It allows parties to deviate from the default UCC rules by mutual agreement.
Under the UCC, when can a sales contract with open terms be considered valid?
When there is a reasonably certain basis for granting an appropriate remedy.
How does the UCC differ from common law regarding the formation of a binding contract?
UCC allows for an undetermined moment of contract making.
Which statement best describes the role of 'open terms' in a sales contract under general contract law and the UCC?
'Open terms' are permissible under the UCC if certain conditions are met.
What is a key distinction between common law and UCC regarding the formation of sales contracts?
UCC allows for contracts even with undetermined moments of making.
Test your knowledge on the open-term provisions provided by the UCC to fill gaps in contracts. Learn about the importance of clearly stating quantity of goods to avoid potential contract disputes.
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