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Tex. Bus. & Com. Code § 2.306

OUTPUT, REQUIREMENTS AND EXCLUSIVE DEALINGS

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 6 court decisions — leading case Lenape Resources Corp. v. Tennessee Gas Pipeline Co. (1996)

Most recently applied in Wesdem v. Illinois Tool Works (June 2023)

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff

How often courts cite this section

1993200020102020202310
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) 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.

(b) 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: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.