Gadgets Galore, a merchant-seller in Georgia, had an oral contract to sell goods
ID: 1187472 • Letter: G
Question
Gadgets Galore, a merchant-seller in Georgia, had an oral contract to sell goods to WidgetsRUS, a merchant-buyer in Illinois for $100,000. Two days after contracting, Gadgets Galore sends a sufficient written confirmation to WidgetsRUS of the agreed-upon transaction. WidgetsRUS, who has reason to know the contents of the written confirmation, fails to object to the contents of the confirmation immediately. Two weeks after receiving the written confirmation, WidgetsRUS receives a delivery of the goods from Gadgets Galore. WidgetsRUS immediately sends an objection to the confirmation to Gadgets Galore. Describe the remedies available to Gadgets Galore under the Uniform Commercial Code? Gadgets Galore, a merchant-seller in Georgia, had an oral contract to sell goods to WidgetsRUS, a merchant-buyer in Illinois for $100,000. Two days after contracting, Gadgets Galore sends a sufficient written confirmation to WidgetsRUS of the agreed-upon transaction. WidgetsRUS, who has reason to know the contents of the written confirmation, fails to object to the contents of the confirmation immediately. Two weeks after receiving the written confirmation, WidgetsRUS receives a delivery of the goods from Gadgets Galore. WidgetsRUS immediately sends an objection to the confirmation to Gadgets Galore. Describe the remedies available to Gadgets Galore under the Uniform Commercial Code?Explanation / Answer
Any contract for the sale of goods will not be enforceable unless there is "some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought." This is known as the Statute of Frauds.buyers and and sellers must read their mail and send return letters (or at least handwritten objections) if they believe mail received does not accurately describe agreements made. There are other places in the UCC where merchants can lose contract rights if they fail to read and respond to mail from other merchants.
If a buyer fails to make a payment due or wrongfully rejects goods or repudiates the contract, then the seller may:
The seller must do any resale of the goods in a "commercially reasonable" manner. If the seller is entitled to damages, it is computed by subcontracting the contract price from the market price at the time and place the goods were to be delivered plus any incidental costs, minus expenses saved by the breach.
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