Question

Lucky Used Cars, using their contracts form, agree to sell Alvin a truck for $5,000. The contract provides that it may not be modified—except by a signed writing. After entering into the contract, Lucky and Alvin orally agree that Lucky will include new floor mats and a bed liner for an extra $100. At the time of delivery, Lucky refuses to provide the new floor mats and bed liner unless Alvin pays an extra $250. Discuss the enforceability of the oral agreement Lucky and Alvin had.

Answer 1

The enforceability of the oral agreement for additional items in a truck sale might be recognized by the courts if Alvin can prove the agreement, although the original contract stipulates modifications need to be in writing. The agreement depends on various factors, including the conduct of the parties and principles of equity.

Step-by-step explanation:

The enforceability of the oral agreement between Lucky and Alvin can be complex due to the existence of the original written contract, which states that modifications must be made through a signed writing. However, contract law generally recognizes that an oral agreement to modify a contract can still be valid under certain circumstances, despite such a clause.

In practice, issues may arise if one party, such as Lucky, decides not to honor the oral modification. If Alvin can prove that the oral agreement was reached, perhaps through witnesses or admission by Lucky, the courts might enforce it, especially if Alvin has already acted in reliance on the agreement (e.g., by paying the extra $100). On the other hand, the presence of the written clause could complicate matters and Lucky may argue that any modification needs to adhere strictly to the 'signed writing' requirement.

If a dispute reaches court, the outcome would depend on the specific laws and facts of the case, including considerations of the earlier agreement, subsequent conduct, and principles of fairness and equity. Alvin may face challenges, but he is not necessarily without legal recourse.

Answer 2

In this example, we learn that the contract specifies that the only way in which this can be modified is through writing. However, it is important to be aware of the fact that any such clause in a contract provided by a merchant to a non-merchant would necessarily have to be accompanied by a separate signature by the non-merchant in order to be effective. As this was not the case in the example, then the clause would not be considered valid, and the oral agreement could still be enforceable.