Which of the following is true of oral contracts for the sale of goods of $500 or more?
A)All oral contracts are unenforceable unless they are for the sale of goods of $500 or more.
B)An oral contract is not enforceable,unless a written confirmation is received and signed by one party,and sent to the other for approval.
C)An oral contract by a merchant is enforceable if a written confirmation is received by another merchant who does not object to within 10 days.
D)An admission in court about the terms of the contract does not negate the general rule.

Question

Quizplus · Accepted Answer

This is a reference to the Statute of Frauds provision in the Uniform Commercial Code (UCC) which requires written evidence of certain contracts, including contracts for the sale of goods of $500 or more. However, there is an exception to this requirement for oral contracts made by merchants that is codified in UCC Section 2-201(2). If a merchant sends a written confirmation of an oral agreement within a reasonable time and the receiving party does not object to the terms within 10 days, the contract is enforceable. Therefore, choice C is correct. Choice A is incorrect because the provision applies specifically to contracts for the sale of goods of $500 or more, not all oral contracts. Choice B is incorrect because it is a misstatement of the requirement for a written confirmation. The confirmation must be sent by the party against whom enforcement is sought, and it must be signed by the sender, not the recipient. Choice D is incorrect because it is not relevant to the question at hand.

Which of the Following Is True of Oral Contracts for the Sale