[Dress Shop Problems] Lara, who has a ladies' dress shop, reached an oral agreement with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be delivered within 30 days. Kim later orally agreed to a modification whereby she would add ten belts to go along with certain dresses at no extra charge. Kim did so because she wanted to maintain Lara's good will. Lara sent Kim a memo confirming their oral agreement, including the modification, but heard nothing. When the dresses did not arrive within 30 days, Lara checked with Kim. Kim told her that their agreement was no good because Kim never signed anything and that the UCC does not apply in the retail arena.
-Which of the following is true regarding the modification to the agreement involving the belts added to the order at no extra charge?
A) The modification is not enforceable because the initial contract involving the sale of the dresses is not enforceable.
B) The modification is not enforceable because no additional consideration was given.
C) The modification is not enforceable unless it can be shown that the dresses were designed to have a belt.
D) The modification is enforceable because although the UCC requires consideration for modifications, the desire to maintain good will satisfies the requirement of consideration.
E) The modification is enforceable because the UCC requires only that modifications be made in good faith.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) allows for modifications to contracts without additional consideration as long as the modifications are made in good faith. This rule is designed to provide flexibility in commercial transactions, recognizing that circumstances may change and parties may need to adjust their agreements accordingly. In this case, the addition of belts at no extra charge, intended to maintain good will, can be seen as a modification made in good faith.

[Dress Shop Problems] Lara, Who Has a Ladies' Dress Shop