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Does UCC §2-306 Limitation Apply to Overestimates?

, New York Law Journal


Lewis Tesser and Timothy Nolen write: Uniformly, courts have held that UCC §2-306 permits buyers in requirements contracts to order more goods than estimated unless the order is made in bad faith or is "unreasonably disproportionate" to a stated estimate. Courts, however, are split on whether the "unreasonably disproportionate" limitation applies to orders which are substantially lower than estimated.

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