Fact Pattern 10-3
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 10-3. Between Grain and Hearty, this contract is most likely enforceable against
A) neither party.
B) Grain only.
C) Hearty only.
D) Grain and Hearty, at least to the extent of the performance.

Question

Fact Pattern 10-3 
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 10-3. Between Grain and Hearty, this contract is most likely enforceable against​
A) neither party.​
B) ​Grain only.
C) ​Hearty only.
D) ​Grain and Hearty, at least to the extent of the performance.

Quizplus · Accepted Answer

While the contract may not be in writing, the faxed memo from Grain to Hearty creates a sufficient writing under the Statute of Frauds since it includes the essential terms of the agreement. Additionally, Grain has performed and Hearty has accepted the deliveries, which further supports the existence of a contract that is at least enforceable to the extent of performance. Therefore, the contract is most likely enforceable against both Grain and Hearty.