Question

Herman, the owner of a furniture store, and Walt, owner of a website that sells furniture, spoke on the telephone about the possibility of Walt selling an Acme brand table to Herman. They orally agreed that Walt would sell Herman the table for $750 to be delivered in one month. After finishing the phone conversation, Walt wrote a note to Herman saying, “This is to confirm our contract for the sale of one Acme brand marble table for $750. (signed) Walt.” Walt sent the letter to Herman’s office in an envelope marked “Important: contract confirmation enclosed.” Herman received the letter the next day, read it, and put the letter in a file although he was not happy with the terms of the deal. Two weeks later, Herman called up Walt and told him that he (Herman) did not intend to be bound by their agreement. Walt then sues Herman for breach of contract. Herman pleads the Statute of Frauds as a defense.  

a.      Judgment for whom? Explain.
b.      If you were Herman’s lawyer, what would you have advised him to do to protect his rights? Explain.
c.      Would it change your answer to (a) if neither Herman nor Walt were professionally involved in the sale and purchase of furniture? Explain.

Answer 1

a) In this case, the oral conversation between Walt and Herman on a product selling over phone call is basically not considered as a proof any court of law. The oral confirmation is not at all considered for any business as an agreement. Always a written and documented agreement is considered for exchange of business and at the same time it is legally valid.

Any oral confirmation, if that consists supported documents than that is considered as a valid document in the court.

In this case only Walt is clear with the agreement whereas Herman is not at all bound with the agreement that was made on the call. Here Walt cannot be sued Herman because of the no physical document for consider.

If any of the case that needs to consider than there should be proper physical evidence to claim for the issue. Always the law need the documented proof of evidence to sue someone.

Finally, the case is not at all considered and Walt cannot get any justification for the agreement that is made through oral conversation.

Herman will not be considered as guilty for braking the agreement because there is no physical document that says the two parties are legally bound.

b) If I was Herman’s layer, there are so many positive things to support Herman in this case

· There is no physical evidence to confirm that the two parties are legally binding

· No other documented proof to support Herman is bound with Walt on purchase of any product

· The phone conversation is an incomplete order confirmation to make an agreemnt

· Through it is recorded without other party concern than it will again consider as an illegal act. Always call recordings should happen on both party’s approvals.

c) No in this case my answer to first question will never change because both are not professionally involved in making an agreement. In all the professional business the first step of accept of any proposal through proper documentation.

Neither Herman and Walt behave professional for making an agreement that bound to continue order. The oral conversation between any two parties is purely invalid in any court of law.

· The oral or verbal agreements in any business will consider as an illegal

· Such cases first of all are not considered in any court, though it is local or supreme court

· These kinds of cases are considered as invalid or legally unenforceable

·

Both behave as unprofessional in making a business agreement. These kind of acts are not at all accepted as proper business proposals for making any business legally binding.

Every business intention is to provide its complete details of the offer and its terms and asking the other parties to understand and with complete acceptance of the agreement are considered as valid to perform the further process.

The sales and purchase of any order is recorded through proper documentation to avoid these kind of issues. One has to purchase or sell any product to those who are completely aware and understand the product specifications that includes its warranty, cost and other terms.

Always the incomplete and verbal communication agreements between any two parties are invalid in any court of law.