Fernando is the owner of Pick Food Restaurant. He makes an oral agreement with Purple Lotus Works for the design and production of 5,000 unique custom-made dinner plates with the logo of Pick Food Restaurant on them. Purple Lotus reworks its production schedule and creates dies to add Pick Food Restaurant's logo in the designer plates. A week later, Fernando calls Purple Lotus and says that he no longer wants the plates and calls off the deal. In this scenario, it is most likely that:
A) the parties' agreement is at Fernando's disposal because he is the customer.
B) Purple Lotus is protected by the statute of frauds exception for specially-manufactured goods.
C) the parties' agreement is not valid since it was only an oral agreement.
D) the agreement between Fernando and Purple Lotus is unenforceable and Fernando is protected under the statute of frauds.

Question

Quizplus · Accepted Answer

If the goods are specially manufactured for the buyer and "not suitable for sale to others in the normal course of the seller's business," and the seller has made a substantial beginning in manufacturing them or has entered a binding agreement to acquire them for the buyer before learning that the buyer is denying the existence of a contract, the buyer loses the statute of frauds defense. Thus, Purple Lotus is protected by the statute of frauds exception for specially-manufactured goods.

Fernando Is the Owner of Pick Food Restaurant