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California Commercial Code Section 2306

Legal Research Home > California Lawyer > Commercial Code > California Commercial Code Section 2306

(1) A term which measures the quantity by the output of the
seller or the requirements of the buyer means such actual output or
requirements as may occur in good faith, except that no quantity
unreasonably disproportionate to any stated estimate or in the
absence of a stated estimate to any normal or otherwise comparable
prior output or requirements may be tendered or demanded.
   (2) A lawful agreement by either the seller or the buyer for
exclusive dealing in the kind of goods concerned imposes unless
otherwise agreed an obligation by the seller to use best efforts to
supply the goods and by the buyer to use best efforts to promote
their sale.

Last modified: January 12, 2009