Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by
A) Dick's or REW.
B) the manufacturer of the mixer.
C) any third party with a material interest, such as one of Dick's suppliers.
D) none of the choices.

Question

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by
A) ​Dick's or REW.
B) ​the manufacturer of the mixer.
C) ​any third party with a material interest, such as one of Dick's suppliers.
D) ​none of the choices.

Quizplus · Accepted Answer

Both parties, Dick's and REW, are bound by the terms of the oral contract if it can be proved. The manufacturer of the mixer and any third party with a material interest are not parties to the contract and therefore cannot enforce it.

Dick's Burgers N' Shakes Enters into an Oral Contract with Restaurant