Question

According to the UCC, an oral agreement:

A. is never legally binding.
B. may be revoked if the buyer sends a notice of objection within 30 days of receipt of the goods.
C. that is partially performed (for example, one of ten lots is delivered) is automatically canceled under the doctrine of force majure.
D. normally must include some written notation if the price of the order the sale of goods is $500 or more.
E. is not valid unless and until some form of documentation is signed by both parties.

Answer 1

An oral agreement under the UCC must typically be accompanied by a written notation for the sale of goods valued at $500 or more due to the Statute of Frauds provision. Oral contracts for goods valued at less than $500 may be enforceable without written confirmation.

Step-by-step explanation:

According to the Uniform Commercial Code (UCC), an oral agreement for the sale of goods is legally binding; however, it normally must include some written notation if the price of the goods is $500 or more. This is referred to as the Statute of Frauds provision of the UCC. Therefore, if the agreement pertains to the sale of goods valued at less than $500, it may be enforceable even without written confirmation. However, for any sale of goods priced at $500 or more, the UCC requires a written agreement or some written memorandum or record to make the contract enforceable.

Additionally, oral agreements may be subject to various modifications, warranties, or other terms as governed by the UCC. For instance, sellers might offer money-back guarantees or suggest a minimum price to dealers, influencing the terms of the sale and the legal relationship between the parties.