Question

In: Operations Management

Background: The GC owners have questions and need clarification about several contract concepts and issues related...

Background: The GC owners have questions and need clarification about several contract concepts and issues related to their new business. Specifically, they have questions about:

  • the Statute of Frauds “writing requirement” and
  • electronic contracts

Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the parties to the agreement, and the parties must be sufficiently identified. GC will be selling goods via the internet, and the owners are wondering whether these electronic contracts are valid and enforceable.

Background Facts You Need To Know:  Company X, a company in Illinois, contracted via the internet with Windows Bright, a small window washing business in Missouri to purchase four cases of Shiny Lite window cleaning solution at $200 per case. Company X paid via the internet with a company credit card. The contract stated that the four cases of Shiny Lite would be shipped to Company X’s place of business in Illinois via UPS. Once UPS delivered the Shiny Lite, the contract required Windows Bright to clean Company X's windows.

Winne and Ralph have asked you to prepare examples and explanations of the statute of frauds and electronic contracts.

To respond to the GC's questions and concerns, you must prepare a fact scenario and be prepared to discuss the scenarios in a meeting with TLG and the GC owners.

A. Discuss whether the contract between X and Windows Bright is subject to the Uniform Commercial Code Statute of Frauds.

B. Analyze and explain whether the internet electronic contract between X and Windows Bright satisfies the “writing” requirements for the Statute of Frauds? If so, how and why?

Solutions

Expert Solution

Answer to the main inquiry:

The argreement among X and Windows Bright is dependent upon the UCC statute of Frauds. Any agreement available to be purchased of merchandise must be recorded as a hard copy in order to be enforceable under UCC statute of Frauds. Be that as it may, there is sure special case to this standard in situations ehere offer of merchandise is more than $500, at that point such agreements are likewise enforceable under UCC statute of Frauds. For this situation, however there is no composed conventional understanding among X and Windows Bright, the offer of merchandise inclided is $800, Consequently, the agreement between them is dependent upon the UCC statute of Frauds.

Answer to the subsequent inquiry:

As examined in the above para, the agreement among X and windows Bright are dependent upon the UCC statute of Frauds. Under Ucc statute of Frauds, the correspondences in the electronic struuture among X and Window Bright will get the job done for this situation. In their correspondences, the terms are unmistakably met out and the installment for the transfer was finished by X. The conveyance of the shipment was consented to by Window Bright to the X's place of business. This common understanding will get the job done and fulfill the composing necessities for the statute of Frauds.


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