Question

Under the Uniform Commercial Code, an agreement modifying a contract _______.

a. always requires consideration.
b. requires consideration only when the sale of goods is involved.
c. may not require consideration.
d. requires consideration only when one of the parties is incompetent.

Answer 1

Under the Uniform Commercial Code (UCC), an agreement modifying a contract may not require consideration when the sale of goods is involved.

Step-by-step explanation:

Under the Uniform Commercial Code (UCC), an agreement modifying a contract may not require consideration. Consideration is a legal term that refers to something of value exchanged between the parties to a contract, such as money, goods, or services.

According to the UCC, agreements modifying contracts for the sale of goods do not require additional consideration to be enforceable. This means that parties can modify their contract without giving any additional value in return.

Note that this rule only applies to contracts for the sale of goods. Contracts involving real estate, services, or other types of agreements may have different rules regarding consideration.