GraceWilliams purchased plates and cups from China Wholesalers for sale to retail customers at her store.Grace and China had little paperwork,just the invoices from the shipments.Otherwise,they operated by phone and shipments in response to the phone call requests.Grace's orders range from $2000-$10,000.China decided to clean up its internal controls and documentation and asked Grace to sign a form agreement.Grace is not sure that she wants to sign a contract.Which of the following is correct,given Grace's circumstances?
A)There need not be a written contract because the parties have a longstanding relationship.
B)If China simply confirms each order from Grace, there is sufficient record of a contract.
C)There must be a written contract for any part of this relationship to be enforceable.
D)Pattern or practice is sufficient writing to establish a contract.

Question

​GraceWilliams purchased plates and cups from China Wholesalers for sale to retail customers at her store.Grace and China had little paperwork,just the invoices from the shipments.Otherwise,they operated by phone and shipments in response to the phone call requests.Grace's orders range from $2000-$10,000.China decided to clean up its internal controls and documentation and asked Grace to sign a form agreement.Grace is not sure that she wants to sign a contract.Which of the following is correct,given Grace's circumstances?
A)​There need not be a written contract because the parties have a longstanding relationship.
B)​If China simply confirms each order from Grace, there is sufficient record of a contract.
C)There must be a written contract for any part of this relationship to be enforceable.
D)Pattern or practice is sufficient writing to establish a contract.

Quizplus · Accepted Answer

While a written contract is always preferable, it is not necessary if there is a clear agreement between the parties. In this case, the invoices and phone call requests between Grace and China serve as evidence of a contract. Additionally, if China confirms each order from Grace, it provides additional record of their agreement.

​GraceWilliams Purchased Plates and Cups from China Wholesalers for Sale

GraceWilliams Purchased Plates and Cups from China Wholesalers for Sale