Goods versus Services. Fred and Zuma Palermo contacted Colorado Carpet Installat

Question

Goods versus Services. Fred and Zuma Palermo contacted Colorado Carpet Installation, Inc., for a price quotation on providing and installing new carpeting and til­ing in their home. In response, Colorado Carpet submitted a written proposal to pro­vide and install the carpet at a certain price per square foot of material, including labor. The total was in excess of $500. The proposal was never accepted in writing by the Palermos, and the parties disagreed over how much of the proposal had been agreed to orally. After the installation of the carpet and tiling had begun, Mrs. Palermo became dissatisfied and sought the services of another contractor. Colorado Carpet then sued the Palermos for breach of the oral contract. The trial court held that the contract was one for services and was thus enforceable (that is, it did not fall under the Statute of Frauds [UCC 2–201], which requires contracts for the sale of goods for the price of $500 or more to be in writing to be enforceable). Discuss fully whether the contract between the Palermos and Colorado Carpet was primarily for the sale of goods or the sale of serv­ices.

Explanation / Answer

The contract is of the service as the essense of the contract is the construction and installation which will be fully completed against the completion of the installation without which the product will not materialise.

Since the final essense is the installation which is a service and the same is not enforceable as the same is not by writting for a price less than $500.

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