Statute: Section 2-201, Statute of Frauds

The following statute is a section of the Commercial Code Sales Act adopted by the state legislature.

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 the party's 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.

Assume that the act applies to the sales of goods. Goods are defined in 2-100 as "those things movable" and do not include real property.

Questions

A. Does the statute apply to the lease of goods?

B. What are the required elements of the statute? In other words, for a contract for the sale of goods of $500 or more to be enforceable, what is required?

A. Mary orally contracts to buy 10 car tires at $70 each. The seller prepares a contract and gives it to Mary. Neither party signs the contract.

1. Who can enforce the contract under the provisions of the statute?

2. Assume that only Mary signs the contract. Who can enforce the contract?

3. Assume that both parties sign the contract and the written contract incorrectly provides for 9 tires at $70 each. Is the contract enforceable under the statute? If so, to what extent is it enforceable?

4. Assume both parties sign the contract and it reads 15 tires at $70 each. Is the contract enforceable under the statute? If so, to what extent is it enforceable?

5. Assume there is no written contract. The seller hands Mary a slip of paper upon which he has written, "This is to confirm our oral agreement." He and Mary both sign the paper. Is there an enforceable contract under the provisions of the statute? If so, to what extent is it enforceable?