Question

James owns Great Expectations, a trendy restaurant in Manhattan. He enters into a contract with Mary, who makes and sells pastries. The contract states that Mary will supply all of Great Expectation's needs for pastries for the next year. Is this contract enforceable?

a. Yes
b. No

Answer 1

The contract between James and Mary can be enforceable if it meets certain conditions under contract law, including the UCC provisions for requirements contracts. Given the information provided and assuming good faith, the contract is likely valid but depends on more context for the terms agreed upon.

Step-by-step explanation:

When considering whether the contract between James and Mary is enforceable, we must look at the requirements for a valid contract. In the field of contract law, an agreement must have an offer, acceptance, consideration, the capacity to contract, and be legal. The described arrangement does appear to meet the basic requirements; however, there are specific rules regarding requirements contracts, which is what this contract seems to be.

A requirements contract is where a buyer agrees to purchase all the goods or services they need from a particular seller. The Uniform Commercial Code (UCC) governs these types of contracts and usually considers them enforceable, provided they are made in good faith and the quantity is not unreasonably disproportionate to any stated estimate. Given that James's restaurant would likely operate within the UCC's jurisdiction, and assuming that both parties are acting in good faith, the contract is probably enforceable. However, without more details on whether both parties have fully understood and agreed upon the estimated quantity and other terms and conditions, a definitive answer requires further information about the contract's specifics.

Answer 2

The contract between James and Mary is generally enforceable as a requirements contract if it meets the elements of a binding agreement and is sufficiently specific, intended to create a legal obligation, and free from issues like duress or fraud.

Step-by-step explanation:

The question asks whether the contract between James, the owner of Great Expectations, a trendy restaurant in Manhattan, and Mary, a pastry supplier, is enforceable. In general, provided that the contract meets the legal requirements of a binding agreement, such as offer, acceptance, capacity, legality, and consideration, it is enforceable. This type of agreement is known as a requirements contract, where Mary agrees to supply all of James's establishment's needs for pastries for a duration of one year. There is a presumption of enforceability as long as both parties have agreed to the terms and there is a mutual understanding of the obligations involved.

However, to ensure enforceability, the contract must be specific enough to establish what 'all needs' entails to prevent any ambiguity. Both parties must have intended to create a legal obligation, and the contract should not be unconscionable or entered into under duress, misrepresentation, or fraud. Furthermore, the contract must conform to any specific statutory requirements or regulations that govern such agreements in the jurisdiction where the contract is executed.