Davis Co. and Ruby Creations enter an oral contract providing that Ruby will deliver three dozen dresses to Davis at $20 per dress. The next day, Davis sent Ruby a letter signed by Davis's purchasing agent confirming the quantity and item, but not mentioning the price. Which of the following is true?
A) Davis Co. is not bound by the terms of the letter unless Ruby responds in writing to verify the agreement.
B) Ruby Creations and Davis Co. were bound in an enforceable contract at the time they entered the oral agreement.
C) Davis is bound by the contract when its authorized agent sends the letter, but Ruby Creations is bound by the oral contract ten days after receiving the letter, unless it objects in writing within that time.
D) The parties cannot be bound by the contract because the price term was missing from the written confirmation.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) allows for an oral contract to be enforceable between merchants if one party sends a written confirmation of the agreement within a reasonable time, and the receiving party does not object in writing within 10 days. This rule applies even though the written confirmation does not include all terms of the agreement, such as the price in this case.

Davis Co and Ruby Creations Enter an Oral Contract Providing That