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Steve and Bill have written contract providing for Steve to sell 1000 widgets per month to Bill at $1 each, 1-1-89 through 12-31-95. On 3-5-90
Steve and Bill have written contract providing for Steve to sell 1000 widgets per month to Bill at $1 each, 1-1-89 through 12-31-95. On 3-5-90 the price of aluminum, the main widget ingredient, goes up 200%. It is still available, but in short supply. Steve notifies Bill that Steve will not supply the widgets at less than the current market price. Reluctantly Bill agrees to pay the higher price. a. Under the common law, Bill would have to pay the higher price. b. Under the UCC, Bill would have to pay the higher price if this is considered a "good faith modification." c. Under the UCC, this cannot be considered an enforceable modification since there is no consideration. d. Both a and b
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