According to Exhibit 21-6 of the text, which of the following statements about material terms under the UCC and the common law is true?

A) Under both UCC and common law, all material terms must be specified in the contract.
B) Under both UCC and common law, material terms may be left open for subsequent determination by the parties.
C) Under both UCC and common law, all material terms other than price must be specified in the contract.
D) Under the UCC, all material terms must be specified in the contract, but under common law, material terms may be left open.
E) Under common law, all material terms must be specified in the contract, but under the UCC, material terms may be left open.

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Mario Sanchez · Accepted Answer

Final Answer : E, Explanation :  Under common law, contracts require all material terms to be specified to be enforceable, ensuring clarity and mutual understanding of the agreement. However, the Uniform Commercial Code (UCC), which governs sales of goods, allows for greater flexibility by permitting some material terms, like price, to be determined at a later date, recognizing the dynamic nature of commercial transactions.

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