Merchant A orally enters into a $1,000 contract with Merchant
B. Merchant A will be legally bound if Merchant B sends a written confirmation, even if Merchant A has not signed it.

Question

Quizplus · Accepted Answer

An exception to the general rule occurs when there is an oral agreement made between two merchants. If either merchant receives a written confirmation of the oral agreement from the other merchant within a reasonable time and does not object to it in writing within 10 days, the writing is sufficient under the UCC even though it has not been signed by the other party.

Merchant a Orally Enters into a $1,000 Contract with Merchant