Wally, business owner of Windy City Watches is located in downtown Chicago, IL. Business is booming and Wally needs to buy a large quantity of Roles watches which sell for $50 apiece. He calls Randy Roles, the wholesaler located in Milwaukee WI. They discuss terms on the phone for a while before coming to an agreement in which Wally offers to buy 100 watches for $25 each. Randy sends over an order form in which Wally states that he is agreeing to purchase watches from Randy for $25 each, but does not include the quantity in which he will buy.
Randy sends 50 watches the following week with a note included stating that he has sent 50 watches and will send the other remaining 50 watches within a few days but includes the bill for the full 1 00 watches. Wally by this time changes his mind about buying the watches and offers to send back the 50 watches that were shipped and pay shipping expense, but will not be able to pay for any of the watches.
Randy sues Wally in federal district court in the northern district of Illinois to enforce the original agreement.
Wally argues that under the USC Statute of Frauds, the agreement is unenforceable because it was never reduced to writing, Randy argues that Wally signed the order form and that the Statute of Frauds was satisfied by performance when Randy sent over the watches. First in order for a contract to be binding, all elements must be included. These elements include the offer, acceptance, and the consideration. Since this is a contract for goods it must clearly state that this contract is for the sale of goods.
In order for the contract to be valid in accordance with USC policy, it only requires that the quantity of goods being sold be identified in the contract. “Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker.
A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing” USC S 2-201. Other terms including price, delivery date and place should be included in the contract. The contract must be signed by both parties in the event in suing for damages. It is true that Wally did sign the order form, but in order for the contract to be valid it must have included the quantity of watched needed for shipment.
As dated above, one of the requirements in the USC Statute of Frauds states that when writing up a contract quantity must always be provided, in case of breach of contract. The courts have no way of factoring in the quantity.
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