Oral contract to purchase smith truck is enforceable

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Reference no: EM132198452

A. Reed, a manufacturer, entered into an oral contract with Rocco, a retailer, to deliver 10 leather jackets to Rocco’s place of business within 15 days. The total sales price was $450. Prior to the delivery of the jackets, the market price of leather increased drastically. Reed knew Rocco needed the jackets within the 15 days and telephoned Rocco stating that he would be unable to deliver the jackets unless the sales price was increased by $150. Rocco agreed to the new price. The following morning Reed sent Rocco a signed letter indicating the new sales price and that the sale was for 10 leather jackets. Rocco received the letter the next day and has taken no further action.

B. Reed entered into an oral contract to purchase Smith’s truck for $50,000, giving $10,000 as a deposit. The parties intended to reduce their agreement to writing at a later date.

C. Reed also entered into an oral contract to purchase 100 bolts of leather at $500.00 per bolt and gave the seller a down payment of $10,000.

Required: Answer the following, setting forth reasons for any conclusions stated.

A. Discuss whether the original sales contract and the subsequent change in price are enforceable under the UCC.

B. Discuss whether the oral contract to purchase Smith’s truck is enforceable.

C. Discuss to what extent the oral contract for the bolts of leather is enforceable.

D. Assuming each contract is enforceable, discuss Reed’s damages if the other parties breach.

Reference no: EM132198452

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