Under the UCC, what is required for assignments in requirements contracts?

Study for the California Bar Exam. Engage with flashcards and multiple choice questions, each question offers hints and explanations. Prepare effectively for your exam!

In a requirements contract governed by the UCC, the requirement for assignments focuses primarily on the concept of good faith and the preservation of the original terms of the contract. The correct answer indicates that the assignee must not alter the terms of the contract and must act in good faith.

Under a requirements contract, one party agrees to provide all of a specified quantity of goods that the buyer needs during a certain period, and the other party agrees to purchase those goods. When assignments are involved, they should not fundamentally change the nature of the contract or create an undue burden on the other party. It's essential for the assignee to maintain the integrity of the original agreement and ensure that their actions reflect a good-faith effort to uphold the contract's intended purpose. This principle is key to ensuring fair dealings and protecting the interests of all parties involved.

Other options involve notions that are either unnecessarily strict or unrelated to the primary tenets of requirements contracts under the UCC, such as requiring written consent or public recording, which are not stipulated as standard requirements for assignments in this context.

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