Question

"Under the Merchant's Written Memorandun Rule, the memorandum will satisfy the Statute of Frauds:"

		unless the other parrty rejects it within 10 days
		only if it has a price term
		none of these answers
		unless the other party rejects it within a reasonable period of time

Answer 1

The correct answer is " unless the other party rejects it within 10days.

The Uniform Commercial Code's (Code) statute of frauds for sales contains three provisions. Subsection (1) states the general rule that a contract for the sale of goods for $500.00 or more is not enforceable "unless there is some writing sufficient to indicate that a contract for sale has been made and it is signed by the party against whom enforcement is sought."' Thus, a party who has not signed any writing may assert the statute of frauds as an absolute defense in a contract dispute.

Subsection (2) creates an exception to this strict statute of frauds provision.This subsection provides: Between merchants, if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against such party unless written notice of objection to its contents is given

within 10 days after it is received.