TEXT: BUSINESS LAW AND THE REGULATIONS OF BUSINESS 11TH 3 - Wendy orally agreed
ID: 359829 • Letter: T
Question
TEXT: BUSINESS LAW AND THE REGULATIONS OF BUSINESS 11TH
3 - Wendy orally agreed by phone to sell Mark 50,000 pounds of frozen chicken at a price of $1.00 per pound. The following day on May 18, Wendy sent Mark a signed confirmation by mail stating,
Mark: This confirms our 05/17/2011 phone agreement for me to sell 50,000 pounds of chicken, delivery on 07/02/2011 at your facility in New Diggings, Wisc. Chicken to be delivered per FDA standards. /s/ Wendy.
"Mark received the memo and did not object to it. Wendy later delivered the 50,000 pounds of chicken. When Mark inspected the shipment, he discovered Wendy sent stewing chickens and not the higher-grade fryers. He rejected the shipment and refused to pay. Wendy sued for breach of contract. Mark claims the statute of frauds as a defense and asserts the contract is not enforceable because "I never signed a written document and your memo was insufficient because it does not mention a price."
Please discuss his claims.
Explanation / Answer
As per the statue of frauds provision, under article 2 (sales) of the UCC, only a written document is enough to express that a contract has been formed between two parties and it is being signed by the party against whom the enforcement of the contract is been requested and this also mentions the number of goods or quantities of the services which is to be sold.
Apart from this, once the recipient has received the written document, he or she has a time duration of 10 days to raise any kind of objection. Once all these requirements are fulfilled, the recipient of the record is in the same position he would have assumed by signing it, and thus the contact will be enforceable on him or her. In the case stated, memo is being received by Mark and no objection was raised by him. This meme c neb considered as the sufficient in nature as it has quantities mentioned and signed by Wendy and therefore it will be enforceable under the law.
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