1. Statute of Frauds – “writing” requirement Background: Generally, contracts fo
ID: 388130 • Letter: 1
Question
1. Statute of Frauds – “writing” requirement Background: Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the parties to the agreement, and the parties must be sufficiently identified. GC will be selling goods via the internet; the owners are wondering whether these electronic contracts are valid and enforceable. Write a hypothetical facts scenario describing specific details of a valid, enforceable electronic contract between GC and Windows Bright, a small window washing business in Missouri. The contract is for the sale of 3 cases of Shiny Lite window cleaning solution, at $200 per case, to Windows Bright, and sold by GC via the internet. The scenario must explain how/why the Statute of Frauds requirement that contracts for sale of goods over $500 be in writing can be satisfied electronically. . Statute of Frauds – “writing” requirement
Background: Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the parties to the agreement, and the parties must be sufficiently identified. GC will be selling goods via the internet; the owners are wondering whether these electronic contracts are valid and enforceable.
Write a hypothetical facts scenario describing specific details of a valid, enforceable electronic contract between GC and Windows Bright, a small window washing business in Missouri. The contract is for the sale of 3 cases of Shiny Lite window cleaning solution, at $200 per case, to Windows Bright, and sold by GC via the internet.
The scenario must explain how/why the Statute of Frauds requirement that contracts for sale of goods over $500 be in writing can be satisfied electronically.
2. Discharge of a contract
Background: There are several reasons for which a contract can be discharged before performance under the agreement. Under common law and the UCC (Uniform Commercial Code, Section 2-615), a contract may possibly be discharged because of commercial impracticability when performance could be completed only with extreme difficulty, or at unreasonable expense, or would have little practical value. Courts are relatively flexible on this matter.
Write a hypothetical facts scenario describing specific details of a contract between GC and a Barton Industries (a fictitious company), for which GC was to provide roof and floor cleaning in Barton’s large corporate office building each month for 3 months. Write the scenario facts so that GC could reasonably argue that GC should be discharged from performing on the ground of commercial impracticability.
The scenario must explain how/why the contract might be discharged for commercial impracticability.
3. Satisfaction of performance
Background: Some businesses advertise, “Satisfaction guaranteed or your money back”. A performance satisfaction clause in a contract can mean that one party does not have to pay or perform his or her duties under the contract unless fully satisfied with the other party’s performance. Courts typically apply an objective, reasonable standard to resolve disputes arising from contracts with satisfaction clauses.
Would you advise GC to include a satisfaction clause on their contracts with cleaning clients? Why or why not? Fully explain and support conclusions.
Explanation / Answer
1. The Statute of Frauds refers to the legal setting which requires certain contracts be preserved in writing to sufficiently allow evidence of the contract and be duly signed by both the parties.
In the mentioned case scenario, GC would be selling the goods via the internet which belongs to Windows Bright, a company dealing in window washing business. Windows Bright is concerned about the extent of validity of electronic contracts and enforcement. The contract should enclose the following points-
The contract comes into force the moment the buyer receives and accepts the products and hence all the clauses stated would apply.
The seller is not responsible for the damages observed after the goods have been with the buyer and hence isn’t liable for replacement.
If it required that Windows bright is making goods specifically on demand by GC, then the contract stays intact.
If the goods are damaged after reaching the customer, GC is responsible for the payback.
The contract remains valid for all the goods for which the buyer has finalized the payment for.
2. In the case scenario, GC was to provide Barton with roof and flow cleaning services for 3 months.
The contract between GC and Barton-
GC is supposed to extend its cleaning services to barton for the span of 3 months within which every month it should without fail report to fulfill its contract.
The grounds onto which GC should be discharged for-
The cleaning services required were too rigorous and more than anticipated.
The cleaning services were of commercial impracticality owing to poor conditions of the roof and floor.
Poor maintenance or old roof and floor zero the efforts and hence it was least viable according to the cost.
The cost of the contract is too low in comparison to the efforts and maintenance required.
3. Yes, the satisfaction clause is meant to attract more customer base and an indirect way to guarantee the quality of the job done. A company with a belief in their services and quality would never need to guarantee any such clause just to attract more customers. The legal implications of such random clauses can be more devastating. Financial losses and loss of repute are involved.
In cases wherein the site isn’t properly inspected for cleaning before signing the contract, the offer of money back guarantee can ensure more trauma than good. Sometimes it is bound to happen that the cleaning job required more efforts and thus if it isn’t viable to put onto efforts owing to financial reasons, evident losses are bound to happen.
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