Under the Uniform Commercial Code, which statement about a requirements contract and the perfect tender rule is true?

• A. Substantial performance suffices.
• B. The buyer may reject imperfect tender if delivery would cause storage issues.
• C. The goods must be tendered in a single delivery always.
• D. The buyer may never reject due to storage constraints.

Answer: (B)

Under the Uniform Commercial Code, the delivery of goods must conform to the contract, but a requirements contract ties the quantity to the buyer’s actual needs rather than a fixed amount. That means the tender must align with what the buyer actually requires at any given time. If a proposed delivery would force the buyer to take or store a large quantity beyond what they can reasonably use or store, it isn’t matching the buyer’s stated requirements, so the buyer may reject that imperfect tender. This reflects how the contract contemplates fluctuating needs and reasonable storage—tenders must fit those real requirements rather than pushing excess inventory onto the buyer.

Substantial performance isn’t enough under the Code—the perfect tender rule governs goods, with limited cures and other exceptions, so merely partially performing isn’t generally sufficient. Requiring a single delivery always isn’t correct because the contract can provide for multiple shipments as the buyer’s needs change. And it’s not true that storage constraints never permit rejection; if a tender would impose an unreasonable storage burden that’s inconsistent with the buyer’s requirements, rejection can be appropriate.