Johnny needs to buy a lawn mower. His lawn is relatively modest, so he began loo
ID: 429424 • Letter: J
Question
Johnny needs to buy a lawn mower. His lawn is relatively modest, so he began looking for an affordable model. His friend, Mark, also needed a lawn mower. His yard was much larger, so he went to Johnny and said “Johnny, we both need a lawn mower.
Why don’t we go shopping and get the lawn mower together.” Johnny and Mark found a suitable lawn mower for $10,000. Johnny actually talked to the salesmen. And the salesmen agreed to extend Johnny a loan to purchase the lawn mower if Mark would orally contract to stand as a surety for Johnny if the payments were not made on time.
For two months, Mark uses the lawn mower more than anyone. But then Johnny fails to make payments and the salesman sues Mark under the oral contract. What will be the likely disposition of the case?
Explanation / Answer
In the above case it is clearly seen that an oral contract was made between Mark and the Salesman.
An oral contract is enforceable unless its subject matter comes within the statute of frauds. Also the Uniform Commercial Code governs the enforceability of oral contracts in sales transactions involving merchants.
Thus the Mark will have to pay the remaining debt along with a fine.
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