Seller orally contracts to sell goods to Buyer for a total price of $450.Several days later,both parties orally agree to raise the price to $550 because of a shortage of these goods.When the goods are delivered,Buyer refuses to accept them.Seller sues.Both parties are merchants.In this situation,which of the following is true?

Question

Quizplus · Accepted Answer

Under the UCC (Uniform Commercial Code), contracts for the sale of goods worth $500 or more must be in writing to be enforceable, except under certain circumstances which are not present in this scenario. However, there is an exception for modifications to contracts that have already been made, which allows modifications to be made orally even if the original contract required a writing. In this case, both parties are merchants, so this exception applies. Therefore, the modified contract is enforceable without a writing. The Buyer's refusal to accept the goods is a breach of contract, so the Seller can recover damages. However, since the original contract was for $450 and the modification raised the price to $550, the Seller can only recover the amount that both parties agreed upon, which is $550.

Seller Orally Contracts to Sell Goods to Buyer for a Total