Output and Requirement Contracts under Article 2 of the Uniform Commercial Code


Summary

This practice note addresses output and requirement contracts, with an emphasis on such agreements under Article 2 of the Uniform Commercial Code (UCC). It covers, among other things, the consequences of a material change in the seller's output or the buyer's demand, the requirement of good faith, the importance of using estimates for anticipated production or purchases, and various contract terms to consider and address when negotiating and drafting the agreement.