Shannon orally agrees to buy 500 telephone answering machines from Thomas for $25,000. Thomas delivers 300 answering machines to Shannon, who receives and accepts them. Which of the following is correct with regard to this transaction?
A) Shannon can enforce the contract for the additional 200 machines.
B) The contract is enforceable to the extent of the 300 machines that have been received and accepted.
C) The entire contract is in violation of the statute of frauds and cannot be enforced.
D) This is a bad deal, and is therefore commercially unconscionable from the beginning and is unenforceable.

Question

Quizplus · Accepted Answer

A contract requires an offer, acceptance, and consideration. Shannon and Thomas have a valid oral contract for the purchase of 500 answering machines for $25,000. However, the statute of frauds requires that contracts for the sale of goods worth more than $500 must be in writing to be enforceable. Since this contract is not in writing, it is unenforceable as a whole. However, since Shannon already received and accepted 300 machines, the contract is enforceable to that extent. Shannon cannot enforce the contract for the additional 200 machines since the entire contract is unenforceable due to the statute of frauds.

Shannon Orally Agrees to Buy 500 Telephone Answering Machines from Thomas