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7. On learning of the rejection, does the glove manufacturer have a cause of action against the ski-shop operator for breach of contract?
A ski-shop operator, in a telephone conversation with a glove manufacturer, ordered 12 pairs of vortex-lined ski gloves at the glove manufacturer's list price of $600 per dozen «for delivery in 30 days.» The glove manufacturer orally accepted the offer, and immediately faxed to the ski-shop operator this signed memo: «Confirming our agreement today for your purchase of a dozen pairs of vortex-lined ski gloves for $600, the shipment will be delivered in 30 days.» Although the ski-shop operator received and read the glove manufacturer's message within minutes after its dispatch, she changed her mind three weeks later about the purchase and rejected the conforming shipment when it timely arrived.
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The contract between the ski-shop operator and the glove manufacturer falls within the Statute of Frauds since it is for $600. However, because the ski-shop operator and the glove manufacturer both appear to be merchants and because the ski-shop operator failed to object to the writing within 10 days of its receipt, the glove manufacturer's faxed memo is a written confirmation that falls within the exception.
A is incorrect. The gloves being an express term in the contract does not have any legal bearing on the breach of contract claim.
C is incorrect. Although the contract falls within the Statute of Frauds provision, an exception to the rule applies.
D is incorrect. The ski-shop operator did not have the right to reject the shipment without breaching the contract.