Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 9

Lewis orally agreed to sell Hughes a house trailer for $5,000 cash. Shortly after the oral agreement was made, Hughes informed Lewis that he would not pay the full $5,000 in cash. He wanted to pay it over a period of time or to pay Lewis $3,500 immediately in full settlement. Lewis sued for breach of the oral contract. Hughes contended that an oral contract for a sale of goods of $500 or more was not binding under the statute of frauds unless it was in writing. During the trial, however, Hughes repeatedly testified that he had informed Lewis that he would purchase the mobile home for $5,000 cash. In these circumstances, should Lewis be awarded damages suffered as a result of the breach of the oral contract? (Lewis v. Hughes, 276 Md. 247, 346 A.2d 231)