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CHAPTER 17
FORMALITIES OF A SALE
Answers to Learning Objectives
1. All contracts to sell or contracts of sale must be evidenced by a writing when the sales price is $500
or more. Such a contract need not be evidenced by a writing when: the goods were received and
accepted by the buyer; the buyer has made full payment; the person against whom enforcement is
sought makes a judicial admission of it; the goods have been specially made for the buyer and they
Lesson Outline
1. All contracts to sell or contracts of sale must be evidenced by a writing when the sales price is $500
or more. Otherwise, they may be:
a. Oral
b. Written
the goods.
5. If there is a full payment, the contract need not be in writing.
6. No writing is required when the person alleged to have made the contract voluntarily admits it in the
course of legal proceedings.
7. No writing is required when the goods are specifically made for the buyer and are not suitable for
Comments on Cases
(p. 189) While there were written closing documents signed by the parties, the court pointed out that they
did not contain the terms which Parrish sought to enforce in his breach of contract claim.
Parrish v. Jackson W. Jones, P.C., 629 S.E.2d 468 (Ga.App.)
Chapter 17 Formalities of a Sale
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(p. 191) The boards were not only specially manufactured to Comfort’s design, but the design was
owned by Comfort so that it would not have been possible for ReMapp to sell them to another
and recover its costs. ReMapp Intern. Corp. v. Comfort Keyboard Co., Inc., 560 F.3d 628 (7th
Cir.)
Answers to Questions
(Page 193)
1. If a sale of goods is for less than $500 the contract may be oral, written, implied from conduct, or a
combination of any of these.
agreed to become the owner of them.
4. Because businesspeople ordinarily regard the delivery of a check or note as payment, in most states
the delivery of such an instrument is sufficient to make an oral contract enforceable.
5. In order for the exception to the statute of frauds based on nonresellable goods to apply, the seller
must have made a substantial beginning in manufacturing the goods or, if an intermediary party, in
Answers to Case Problems
(Page 193)
1. No. The court said even if the heading and initials on the emails could constitute a signature for
statute of fraud purposes the emails were between TEC and VTNA. May did not get a copy until
after filing suit. The judge stated, “It is difficult to understand how emails to which plaintiff was
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2. No. The court pointed out that since the agreement between Robins and Zwirner was oral, the
Statute of Frauds prohibited its enforcement since the sale price for the paintings was well above
$500. The court said the contract was clearly one for the sale of goods and not the rendition of
5. Yes. Since the materials included Caprilands’ name they were not suitable for sale to others. As
nonresellable goods they were an exception to the statute of frauds. Kalas v. Cook, 800 A.2d 553
(Conn.)