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 unenforceable.

Question

Quizplus · Accepted Answer

The contract is enforceable to the extent of the 300 machines that have been received and accepted. Shannon cannot enforce the contract for the additional 200 machines because there is no written agreement and the contract falls under the statute of frauds. However, the part of the contract that has been performed (delivery and acceptance of 300 machines) is enforceable. And Shannon can recover damages for the undelivered 200 machines.

Shannon Orally Agrees to Buy 500 Telephone Answering Machines from Thomas