Harry was on the phone negotiating the terms of a contract for the purchase of ball caps containing his university's logo with A

Question

2 years ago

15

Harry was on the phone negotiating the terms of a contract for the purchase of ball caps containing his university's logo with A

ll Logos, LLC. They had agreed on the quantity (1200) and price ($2/cap), but could not agree on the delivery date, so Harry hung up. A few days later, Harry received an invoice in the mail, billing him for the caps, and advising that they would be shipped in 30 days' time. Under the UCC, has a contract been formed?

Business

1 answer:

Andreas93 [3] · Answer 1 · 2022-09-22T00:19:33+03:00

Answer: d. No, a contract has not been formed, since Harry has not signed a contract for the goods.

Explanation:

The Uniform Commercial Code (UCC) utilizes the Statute of Frauds which states that contracts for goods worth over $500 in value are to be signed for them to be valid.

The goods here are worth:

= 1,200 * 2

= $2,400

This contract is well worth over the $500 required for the contract to be signed which means that as Harry did not sign the contract, there is no contract.