Cal. Com. Code § 2306

General Obligation and Construction of Contract

Known as the Uniform Commercial Code

The act spans §§ 1101–12107 (623 sections).

Applied in 1 court decision — leading case Encore Glass, Inc. v. Anchor Glass Container Corp. (In Re Anchor Glass Container Corp.) (2006)

Most recently applied in Encore Glass, Inc. v. Anchor Glass Container Corp. (In Re Anchor Glass Container Corp.) (July 2006)

Enacted by Stats. 1963, Ch. 819.

(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.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.