Kimberley, a merchant-seller in Kansas, had an oral contract to sell goods to Jane, a merchant-buyer in Memphis for $100,000. Two days after contracting, Kimberley sends a sufficient written confirmation to Jane of the agreed-upon transaction. Jane, who has reason to know the contents of the written confirmation, fails to object to the contents of the confirmation immediately. Two weeks after receiving the written confirmation, Jane receives a delivery of the goods from Kimberley. Jane immediately sends an objection to the confirmation to Kimberley. Which of the following is true of the contract between Kimberley and Jane?

Question

Quizplus · Accepted Answer

The contract is valid as Kimberley sent a sufficient written confirmation to Jane and Jane did not object to its content immediately. According to the UCC 2-201(2), a written confirmation is considered sufficient if the recipient has reason to know its contents and does not object within 10 days of receipt. Jane received the goods two weeks after receiving the written confirmation and therefore, the contract is valid. The Statute of Frauds cannot be raised against the contract as a sufficient written confirmation was sent and received.

Kimberley, a Merchant-Seller in Kansas, Had an Oral Contract to Sell