Crucial Exams

Multistate Bar Examination Practice Question

Two businesses, a supplier of raw materials and a manufacturer of consumer products, conduct negotiations over email regarding a potential supply agreement. Their emails state that the manufacturer will 'purchase materials from the supplier every quarter as needed' and that the price for these materials 'will be negotiated later based on market conditions.' No formal written contract is signed, but the manufacturer later refuses to purchase any materials. The supplier sues for breach of contract. Which fact most affects whether there is an enforceable contract in this scenario?

  • The supplier relied on the emails by increasing its inventory of raw materials.

  • The parties’ prior dealings show they have conducted similar transactions in the past with clear terms.

  • The emails specify that the manufacturer will purchase materials every quarter as needed.

  • The parties agreed to negotiate the price later based on market conditions.

Multistate Bar Examination
Contracts
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