Statute of Frauds

Topics: Contract, Contract law, Legal terms Pages: 1 (257 words) Published: December 4, 2012
Any contract for the sale of goods that exceeds $500 falls under the statute of frauds and must be in writing to constitute an enforceable contract. The contract between Tidwell and Anthony amounts to $50,000 and must be in writing to be enforceable, which presents the first issue in this problem. There are, however, alternative means of satisfying the Statute of Frauds. In this case, Tidwell provided Anthony with a good faith payment of $10,000 when the oral contract was entered into on June 1. This earnest payment falls under the partial payment rule. The UCC permits partial payment to satisfy the Statute of Frauds, but only for the quantity of goods that have been paid for. In this case, Tidwell should be entitled to the quantity that he should have received for the $10,000 when the oral contract was entered into on June 1, which would amount to 20 heads of cattle. The second issue in this problem arises from the price change that occurred on June 3; the price has reduced from $500/head of cattle to $400/head of cattle. In this case, Tidwell has the opportunity to realize a savings from Anthony’s repudiation and can purchase the cattle from a different seller for a lower price. Thus, Anthony would not owe Tidwell any additional damages other than putting him back in the position he was before the contract was entered into, which would require him to either return the $10,000 or provide him with 20 heads of cattle.
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