Question

(450 to 600 words):

In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation he wrote a memo to file documenting the agreement, initialed it, and sent a copy to the sales representative. A dispute arose between the parties and the linen company sued the hotel. Does the Statute of Frauds create a defense to the lawsuit? Why or why not?

Now suppose the linen company breached the contract, instead of the hotel. Does the Statute of Frauds create a defense to the lawsuit? Why or why not?

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Answer 1

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EXPLANATION:

The hotel has sufficient protection under the Law of Frauds. The classification of frauds states that the individual or Party opposed to it must file a recorded written agreement for the selling of products of a value of 500 dollars or more but less than one thousand dollars. The hotel manager ordered items worth a thousand dollars (the linens). Due to their value, the order of thousand dollar linen is subject to fraud.The hotel uses the linen company because they can not comply with their responsibilities to display an invoice or memorandum. Within the contract, the parties involved in the transaction, the goods to be performed and/or the value of the goods must be specified. The faction that imposes the Law of Fraud must be signed and/or initialed.

The consent may be made by phone in compliance with the Act of Promissory Estoppel as a pledge is made and a interest of the benefit is taken into account. The other party must also assure that the good that is to be given will be fulfilled. The quantity and/or value of the goods can also be taken into account. The paper written will be drawn up by the company's sales staff because it falls within their titles and area of expertise. If there is more than one copy of the written text it will be more productive and satisfying. This document must not be the same format as it needs to have the same detail. The written records would presumably later be used as evidence of settlement. The hotel would most probably be able to use this evidence in court under all the circumstances that have been provided.

If you look at the case where the linen company breached the contract rather than the hotel, you don't have to dig for the statues of fraud. The linen company will sue as the common law will in this case be used. There are a variety of considerations to be taken into consideration to make such a event.The big thing they must look into is that a verbal arrangement is still accepted because of the Rule of Promissory Estoppel, whether the two parties have a correspondence or written file. The terms of the contract, if the goods have been fulfilled and whether the details of the return order or termination of the good are other considerations to be considered. If the linen company is found not to fulfill the contract obligations between it or the hotel, they should reimburse or meet the original contract and terms for any goods not given to the hotel.

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