Question

The UCC requires any contract for the sale of goods valued at $500 or more to be written down and signed by the party to be charged. If a contract for the sale of goods valued at $500 or more is not written down, then courts will generally not enforce that agreement. The textbook discusses four exceptions to this rule, or rather, alternative means of satisfying the statute of frauds in contracts involving sales of goods. In these situations, courts will enforce a contract despite it not being written down in a document signed by the party to be charged.

What is the purpose of having these exceptions, and do they achieve that purpose?

Answer 1

The exceptions to the requirement of a written and signed contract for the sale of goods valued at $500 or more provide flexibility and fairness. They allow parties to enforce oral or informal agreements in certain situations.

Step-by-step explanation:

The purpose of having exceptions to the requirement of a written and signed contract for the sale of goods valued at $500 or more is to provide flexibility and promote fairness in certain situations. The exceptions allow parties to enforce oral or informal agreements even if they do not meet the requirements of the statute of frauds. The exceptions include: partial performance, specially manufactured goods, admissions in court, and goods received and accepted.

These exceptions achieve the purpose of allowing parties to rely on their agreements and avoid unfair outcomes. For example, if a buyer has already partially performed by paying a substantial amount or accepting and using the goods, it would be unjust to deny enforcement of the contract solely based on the lack of a written agreement. The exceptions balance the need for enforceability with the requirement of formal written contracts.