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 immediately object to the contents of the confirmation. Two weeks after receiving the written confirmation, Jane receives delivery of the goods from Kimberley, and Jane then sends an objection to the written confirmation to Kimberley. Which of the following is true of the contract between Kimberley and Jane?

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), which governs commercial transactions in the United States, a contract for the sale of goods over $500 must be in writing to satisfy the Statute of Frauds. However, there is an exception for merchants. If one merchant sends a written confirmation of an oral agreement to another merchant, and the receiving merchant knows of its contents but fails to object in writing within 10 days, the requirement of the Statute of Frauds is satisfied. In this case, Jane failed to object within 10 days, making the contract enforceable despite being initially oral.

Kimberley, a Merchant Seller in Kansas, Had an Oral Contract