A buyer and seller have been doing business for months without a formal contract. Every Monday, the seller delivers supplies to the buyer's business. Every Thursday, the buyer pays the invoice by mail. Difficult times arrive. The buyer fails to make payment and the seller sues for breach of contract. Is there a contract?

Question

Quizplus · Accepted Answer

Under the UCC, contracts can be formed by the conduct of the parties, as opposed to a formal written agreement. In this case, the consistent delivery of supplies on Mondays and payment on Thursdays by both parties can be seen as an implied contract. Therefore, the seller could prevail in a breach of contract lawsuit.

A Buyer and Seller Have Been Doing Business for Months