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16. Is there an enforceable contract between the jewelry maker and the company?
In the meantime, the project for which the jewelry maker planned to use the gold was canceled. The jewelry maker therefore refused to accept delivery of the gold or to pay the $65,000 demanded by the company.
In a telephone conversation, a jewelry maker offered to buy 100 ounces of gold from a precious metals company if delivery could be made within 10 days. The jewelry maker did not specify a price, but the market price for 100 ounces of gold at the time of the conversation was approximately $65,000. Without otherwise responding, the company delivered the gold six days later.
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B is correct. The parties failed to comply with the writing requirement of UCC § 2-201(1). Under that section, a contract for the sale of goods for a price of $500 or more is not enforceable unless there is a writing indicating a contract of sale that is signed by the party against whom enforcement is sought. In this case, the absence of such writing signed by the jewelry maker renders the parties' oral agreement unenforceable.
A is incorrect. Under UCC § 2-305, a contract may be enforceable in the absence of a price term so long as the parties otherwise intended to enter into a contract. In this case, the dispositive issue is whether the parties' oral agreement is enforceable. Under UCC § 2-201(1), a contract for the sale of goods for a price of $500 or more is not enforceable unless there is a writing indicating the contract that is signed by the party against whom enforcement is sought. Here, the absence of such a writing signed by the jewelry maker renders the parties' oral agreement unenforceable. An exception to the writing requirement arises when a seller delivers goods that are accepted by the buyer, but in this case, the jewelry maker did not accept the gold.
C is incorrect. As explained above, under UCC § 2-201 and § 2-305, a contract for the sale of goods over $500 must be evidenced by a signed writing, but the absence of a price term will not make a contract unenforceable as long as the parties otherwise intended to enter into a contract. The absence of such a writing signed by the jewelry maker renders the parties' oral agreement unenforceable.
D is incorrect. This answer suggests there was an alternate form of consideration that can make this contract enforceable even without a signed writing. However, because the jewelry maker did not accept the gold, whether there was an implied promise is irrelevant.