Scenario 2 - Statute of Frauds

Ginny Klein orally agreed to purchase a security system for her business from IHK. The price for the system was $45,000. Klein wanted to use the system to monitor activity of persons entering and exiting the facilities. The sale of the system also included a one-time setup service visit priced at $1,000. The total contract price amounted to $46,000. The security system was delivered and set up, and Klein paid $46,000. Afterwards, Klein discovered that she could obtain the same goods and services from another seller for a total contract price of $38,750. Klein now seeks rescission of the contract, based on the fact that more than $500 in goods was involved in the sales transaction, that the contract between IHK and her company was subject to the statute of frauds and that the oral agreement between them was therefore unenforceable. Klein wants to return the system to IHK, and receive reimbursement of $45,000 (She is willing to waive his claim to reimbursement for the $1000 setup service visit.)

• Evaluate Klein's legal position in this matter using the common law of contracts or the UCC.