Smith visited the showroom of the Appliance Company and orally ordered a $300 refrigerator.The Company verbally accepted the order,and later (the next day)sent Smith a duplicate purchase order for the appliance along with a request that he sign and return one copy.Smith did not sign the order,and when the appliance was delivered,refused to take delivery.ABC sued Smith for breach of contract.

Question

Quizplus · Accepted Answer

The Sale of Goods Act requires a written contract for the sale of goods over $500. The purchase order sent by ABC to Smith would defeat Smith's defense based upon the Sale of Goods Act because it is a written contract. If Smith accepted delivery of the refrigerator and a week later refused to pay, ABC Company would not require a signed purchase order to enforce the contract because the contract was formed when Smith accepted delivery of the refrigerator. In its suit against Smith, the only remedy available to the ABC Company would be specific performance of the contract because the refrigerator is a unique good.

Smith Visited the Showroom of the Appliance Company and Orally