Question

Fact Pattern 15-A1. Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. Macro begins to perform, but NFC refuses to pay. Macro files a suit to collect. NFC claims that there is no contract.

Between Macro and NFC, there is?
A. an oral contract only.
B. a pre-contract only.
C. a written contract.
D. no contract

Answer 1

There appears to be a written contract between Macro Marketing, Inc., and National Food Corporation due to the memo summarizing the agreed terms and Macro's commencement of performance under those terms.

Step-by-step explanation:

Between Macro Marketing, Inc., and National Food Corporation (NFC), there appears to be a written contract. The existence of a contract is indicated by the summary memo Macro sent to NFC, which outlines the terms agreed upon, including a two-year term. This memo on Macro's letterhead, accompanied by Macro's commencement of performance under the terms outlined, can serve as evidence of a written agreement.

As such, unless NFC can provide evidence to the contrary, such as showing that the memo was not intended to be a contract or that important terms were not agreed upon, a court is likely to find that a written contract exists. It is important to note that under the Statute of Frauds, certain contracts, such as those for the sale of goods over a certain price or for agreements that cannot be performed within one year, must be in writing to be enforceable.