Question: Thomas is looking to enter a contract with Susan to purchase high quality shelving specific to the needs of his manufacturing plant. Susan is happy
Thomas is looking to enter a contract with Susan to purchase high quality shelving specific to the needs of his manufacturing plant. Susan is happy to sell Thomas what he needs, but she knows it will cost her a lot of money to make the specific types of shelves that Thomas wants to buy, and she is afraid of spending a lot of money to make the shelves and then having Thomas decide not to buy them. The final contract that Thomas and Susan agree to says that Thomas will have the ability to determine whether he wants to purchase between $ and $ million worth of shelves, but that if Thomas buys less $ worth of shelves then he has to pay for the amount of shelves he orders and also pay an additional $ fee to Susan.
Will this contract be governed by Article of the UCC or by common law?
The UCC will govern as long as Thomas ends up buying at least $ worth of shelves and therefore does not also have to pay the $ fee
The UCC will not apply because the contract includes the possibility of a $ fee that is unrelated to the sale of a physical good
The UCC will govern because as at the time of the contract's creation, the predominant purpose of the contract was for the sale of goods
The UCC will not apply here because this is a mixed contract.
The UCC will govern because the $ fee is less than the total value of the contract if Thomas decides to buy $ million worth of shelves
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