COMMERCIAL LAW (UCC ARTICLE 2) ESSAY

Mr.K,anelephant buyer,obtained anelephantfrom Mr.M,anelephantsellerpursuant to whatheclaimswasanoralleasewithanoptiontopurchase.Mr.Mclaimstheoralagreementwas merelyforleaseoftheanimalandthetermsthereofwereembodiedinatelegramsentbyMr.Kand there was no mention ofany option to buy.

Mr. K claims and offers testimony to prove that on or about May 8 or9, 1993, he had a phoneconversationwithMr.Mwhereinheexercisedtheoption tobuytheelephantfor$5,000withthe lease money already paid toapply on the purchase price.

ThecontentsofanenvelopemailedbyMr.KtoMr.MMay11,1993arereflectedbelow.Itisadmittedthatacheck intheamountof$600.00wasenclosed.Mr.Mclaimsthatitwasenclosed inafolded blanksheetofpaper.Mr.Kofferedtestimonytotheeffectthatthecheckwasenclosed with a letter in words and figures as follows:

May11,1993

Mr.M

BamusCircus

P.O. BoxJ

HappyTime,Oklahoma74743 Dear Mr. M:

ThankyouforyourletterofJuly3rd.

Supplementingourlasttelephoneconversation, thisletterwillserveasyourconfirmationthatwe agree to purchase the elephant "Perry" at a total cost of $5,000 in lieu of continuing our lease agreement.

Enclosed you will find a check in the amount of Six Hundred Dollars ($600.00) which isto be applied to the purchase, as isour previous payment of $450, asagreed.

Itisalsoagreedthatthebalance will bepaidassoonaspossibleandthattheentirebalancewill be paid within one year.

With warmest personal regards, Sincerely,

Mr.K

Thetrial court ruled in favorofMr.K.Discussthecorrectness ofthatdecision and all issues presented.