6 UNIT FOUR: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS
f. Open Quantity Terms
If the quantity term is left open, a court will have no basis for determining a remedy [UCC 2–
306].
1) Requirements Contracts
Requirements contracts are exceptions—the quantity is the amount that occurs during a
normal production year, and the actual quantity cannot be unreasonably disproportionate.
2) Output Contracts
Output contracts are also exceptions.
2. Merchant’s Firm Offer
a. When a Merchant’s Firm Offer Arises
This arises when a merchant gives assurances that an offer will remain open. The offer is
b. Requirements for Firm Offer
The offer must be written and be signed by the offeror.
B. ACCEPTANCE
Acceptance may be by a prompt shipment of goods or a promise to ship [UCC 2–206(1)(b)]. A shipment
of nonconforming goods is both an acceptance and a breach, unless the seller seasonably notifies the
buyer that the nonconforming shipment does not constitute an acceptance and is offered only as an
accommodation.
1. Communication of Acceptance
2. Additional Terms
If an offeree’s response indicates a definite acceptance, a contract is formed, even if the ac-
ceptance includes terms in addition to or different from the offer [UCC 2–207(1)].
a. Rules When One Party or Both Parties Are Nonmerchants
If the modifications are not conditional, and one of the parties is a merchant, the contract is
formed according to the terms of the original offer.
b. Rules When Both Parties Are Merchants
If the modifications are not conditional, and both parties are merchants, the additional terms