K's--requirement K's

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goosey
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K's--requirement K's

Postby goosey » Fri May 06, 2011 9:08 pm

can private actors enter into these? for example, if A says to B "bring all the beer we'll need" can this be a requirements contract or do we need it to be merchants/businesses/etc

Renzo
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Re: K's--requirement K's

Postby Renzo » Fri May 06, 2011 9:40 pm

It's only valid if it's definite enough to be a contract, and that would be very difficult to show if there isn't a normal course of business to refer to. It's not that you need a merchant per se, but "all the beer we need" is unlikely to definite enough between two people who just met--thus it would be void for vagueness.

random5483
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Re: K's--requirement K's

Postby random5483 » Fri May 06, 2011 9:45 pm

Renzo wrote:It's only valid if it's definite enough to be a contract, and that would be very difficult to show if there isn't a normal course of business to refer to. It's not that you need a merchant per se, but "all the beer we need" is unlikely to definite enough between two people who just met--thus it would be void for vagueness.


I don't think you need to be merchants as the above poster mentioned. However, a "all the beer we need" contract won't be void for vagueness if you specify an approximate number. Many requirements contracts will say "all the X we need which is usually around Y a month."

The problem you might run into is that requirements and output contracts must be exclusive or most courts won't enforce (I think UCC 2-609 is the applicable section, but might be off).

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goosey
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Re: K's--requirement K's

Postby goosey » Fri May 06, 2011 9:55 pm

Renzo wrote:It's only valid if it's definite enough to be a contract, and that would be very difficult to show if there isn't a normal course of business to refer to. It's not that you need a merchant per se, but "all the beer we need" is unlikely to definite enough between two people who just met--thus it would be void for vagueness.


I mean this is between friends, so can you say that we could ascertain a reasonable quantity by looking at past requirments?

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goosey
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Re: K's--requirement K's

Postby goosey » Fri May 06, 2011 10:01 pm

also does a delegation require add'l consideration?

If a wants to delegate to b, does the delegation require consideration to be valid?

Renzo
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Re: K's--requirement K's

Postby Renzo » Fri May 06, 2011 10:10 pm

goosey wrote:
Renzo wrote:It's only valid if it's definite enough to be a contract, and that would be very difficult to show if there isn't a normal course of business to refer to. It's not that you need a merchant per se, but "all the beer we need" is unlikely to definite enough between two people who just met--thus it would be void for vagueness.


I mean this is between friends, so can you say that we could ascertain a reasonable quantity by looking at past requirments?


As long as you could point to something that would make it reasonably definite, it would pass. Catering contracts are an example: if you say "bring all the food for the party, and we expect 500 guests," someone might not eat, or everyone might be extra hungry, but the caterer can make a reasonable estimate.

LawWeb
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Re: K's--requirement K's

Postby LawWeb » Fri May 06, 2011 11:44 pm

This can be a valid K, if there is something definite on the other side, ie bring all the beer we need and we will pay you for it. Bring all we need can be specific enough for a requirements K...

StyrofoamWar
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Re: K's--requirement K's

Postby StyrofoamWar » Sat May 07, 2011 12:51 am

goosey wrote:also does a delegation require add'l consideration?

If a wants to delegate to b, does the delegation require consideration to be valid?


My understanding is that no, delegation does not require additional consideration. Subject to certain exceptions, an obligor may delegate his responsibilities to a third party unilaterally and even without notice.

Renzo
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Re: K's--requirement K's

Postby Renzo » Sat May 07, 2011 9:06 am

StyrofoamWar wrote:
goosey wrote:also does a delegation require add'l consideration?

If a wants to delegate to b, does the delegation require consideration to be valid?


My understanding is that no, delegation does not require additional consideration. Subject to certain exceptions, an obligor may delegate his responsibilities to a third party unilaterally and even without notice.


This is right, unless there's a clause that says no assignments/subcontractors. The only flat prohibition is the context of agency relationships. If you hire an employee to do a job, that person can't subcontract someone else to do the job; it's assumed you hired the person you want to do the job, and you should get that person.




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