The Uniform Commercial Code (UCC) includes a number of provisions that apply to

Question

The Uniform Commercial Code (UCC) includes a number of provisions that apply to contracts between merchants. One provision of the UCC is the Statute of Frauds.

Hot Coffee (a fictional Florida corporation) entered into a $1,000 contract for the sale of their mugs to an independent grocery store called Foods ‘r’ Us. Are there any specific requirements for Hot Coffee’s contract based on the Statute of Frauds?

In your assignment:

Summarize the Statute of Frauds

Discuss what, if any, the specific requirements would be for the contract between Hot Coffee and Foods ‘r’ Us

Explanation / Answer

In this case the value of the contract is $1,000.

Generally oral contracts are enforceable. But the Statute of Frauds requires that certain contracts have to be in writing in order to be enforceable. These contracts are – contracts for sale of land, contracts for sale of goods for $500 or more, contracts in consideration of marriage, contracts of suretyship, contracts that will not be performed within a year and contracts where an estate executor agrees to pay estate debts from his personal funds.

In this case Hot Coffee will sell mugs to Food r Us worth $1,000. As the contract for the sale of goods is more than $500 in value and consideration the contract will have to be in writing.

Thus the specific requirement for the contract between Hot Coffee and Foods ‘r’ Us, as per Statute of Frauds, is that the contract should be in writing in order to be enforceable.

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