Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.The transaction between Millet Grains and Corn Cereals falls within the provision of the Statute of Frauds involving
A) collateral promises.
B) the one-year rule.
C) sales of goods.
D) secondary contracts.

Question

Fact Pattern 15-1Millet Grains Cooperative and Corn Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Millet Grains then faxes Corn Cereals a memo on Millet Grains's letterhead that summarizes the points on which they agreed, including a two-year term. Millet Grains begins to perform, and Corn Cereals accepts the deliveries but refuses to pay.
-Refer to Fact Pattern 15-1.The transaction between Millet Grains and Corn Cereals falls within the provision of the Statute of Frauds involving​ 
A) ​collateral promises. 
B) ​the one-year rule. 
C) ​sales of goods. 
D) ​secondary contracts.

Quizplus · Accepted Answer

The transaction falls under the provision of the Statute of Frauds known as the one-year rule as it involves a contract for periodic deliveries of corn for a two-year term. The memo summarizing their agreement satisfies the writing requirement of the Statute of Frauds, but Corn Cereals' acceptance of the deliveries establishes their acceptance of the contract's terms, including payment.