Question

Under the Uniform Commercial Code (UCC) sales article, which of the following statements is CORRECT concerning a contract for the sale of goods involving a merchant seller and a merchant buyer for a price of $10,000?

1. If the contract is oral, and the seller sends the buyer a written confirmation, that confirmation could substitute for a signed contract.
2. The contract would follow the common law rules rather than the UCC rules.

(A) I only

(B) II only

(C) both I and II

(D) neither I nor II

Answer 1

Answer ) option A) only 1st is true

1st is right

written confirmation rule in UCC provides that if both parties to an oral sales or lease contract are merchants, then Statute of Frauds , (that requires that all contracts for the sale of goods costing $500 or more and lease contract involving payments $1000 or more to be in writing) Writing requirement can be satisfied if:

1. one of the parties to an oral agreement sends a written confirmation of the sale & not objected by other party.

Option 2 is false

Common law governs contractual transactions with real estate, services, insurance, intangible assets and employment. UCC governs contractual transaction with goods and tangible objects (such as a purchase of a car).

Thus the contract in question involves tangible goods