A Retailer and a Wholesaler enter into an oral agreement for the sale of 1,000 units of a specific electronic component at a price of 0.75 per unit. The Wholesaler sends a signed written confirmation to the Retailer the next day stating: 'This confirms our deal for 1,000 units at 0.75 each.' The Retailer receives the note but objects 12 days later. Is the contract enforceable?

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UCC Contracts QUESTION #5839

Question 1

A Retailer and a Wholesaler enter into an oral agreement for the sale of $1,000$ units of a specific electronic component at a price of $0.75$ per unit. The Wholesaler sends a signed written confirmation to the Retailer the next day stating: 'This confirms our deal for $1,000$ units at $0.75$ each.' The Retailer receives the note but objects 12 days later. Is the contract enforceable?

No, because it was not signed by the Retailer.
Yes, because the Retailer failed to object within 10 days of receipt.✔️
No, because oral contracts for goods are never enforceable.
Yes, because the total value is under $1,000$.

Correct Answer Explanation

Under UCC §2-201(2), the Merchant's Confirmatory Memo rule binds the recipient if they fail to object in writing within 10 days.

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