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question
On December 30, a restaurant entered into a written contract with a bakery to supply the restaurant with all of its bread needs for the next calendar year. The contract contained a provision wherein the restaurant promised to purchase "a minimum of 100 loaves per month at
$1 per loaf. " On a separate sheet, there was a note stating that any modifications must be in writing. The parties signed each sheet. Both sides performed fully under the contract for the first four months. On May 1, the president of the bakery telephoned the manager of the restaurant and told him that, because of an increase in the cost of wheat, the bakery would be forced to raise its prices to $1. 20 per loaf. The manager said he understood and agreed to the price increase. The bakery then shipped 100 loaves (the amount ordered by the restaurant) to the restaurant, along with a bill for 100 and refused to pay any more. Is the restaurant obligated to pay the additional $20?Plain-text mathematical notation (without MathML)
On December 30, a restaurant entered into a written contract with a bakery to supply the restaurant with all of its bread needs for the next calendar year. The contract contained a provision wherein the restaurant promised to purchase "a minimum of 100 loaves per month at $1 per loaf. " On a separate sheet, there was a note stating that any modifications must be in writing. The parties signed each sheet. Both sides performed fully under the contract for the first four months. On May 1, the president of the bakery telephoned the manager of the restaurant and told him that, because of an increase in the cost of wheat, the bakery would be forced to raise its prices to $1. 20 per loaf. The manager said he understood and agreed to the price increase. The bakery then shipped 100 loaves (the amount ordered by the restaurant) to the restaurant, along with a bill for 120.Therestaurantsentthebakeryacheckfor100 and refused to pay any more. Is the restaurant obligated to pay the additional $20?
Original LaTeX notation
On December 30, a restaurant entered into a written contract with a bakery to supply the restaurant with all of its bread needs for the next calendar year. The contract contained a provision wherein the restaurant promised to purchase "a minimum of 100 loaves per month at $1 per loaf. " On a separate sheet, there was a note stating that any modifications must be in writing. The parties signed each sheet. Both sides performed fully under the contract for the first four months. On May 1, the president of the bakery telephoned the manager of the restaurant and told him that, because of an increase in the cost of wheat, the bakery would be forced to raise its prices to $1. 20 per loaf. The manager said he understood and agreed to the price increase. The bakery then shipped 100 loaves (the amount ordered by the restaurant) to the restaurant, along with a bill for $120. The restaurant sent the bakery a check for$100 and refused to pay any more. Is the restaurant obligated to pay the additional $20?
choices
- Yes, because the May 1 modification was enforceable even though it was not supported by new consideration.
- Yes, because the bakery detrimentally relied on the modification by making the May shipment to the restaurant.
- No, because there was no consideration to support the modification.
- No, because the modifying contract was not in writing; it was, therefore, unenforceable under the UCC.
subject
professional_law
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