An oral contract to sell custom-made goods to a buyer is binding if the goods are not suitable for sale to anyone else in the ordinary course of the seller's business,and the seller has made a substantial beginning in manufacturing or procuring the goods.

Question

Quizplus · Accepted Answer

This statement is in accordance with the Uniform Commercial Code (UCC) § 2-201(3). It recognizes that some contracts may not be in writing but are still enforceable. In this case, an oral contract can be binding if the goods are custom-made and cannot be sold to anyone else. Additionally, the seller must have already started making or ordering the goods.

An Oral Contract to Sell Custom-Made Goods to a Buyer