The Formal Contracts on Sales

The agreement of both Brian and Harry for the sale of model trains should have had a written agreement or contract in order for it to be valid. Article 2 section 201 (a) on formal requirements states that:

“A contract for the sale of goods for the price of $5,000 or more is not enforceable by way of action or defense unless there is some record sufficient to indicate that a contract has been made between the parties and authenticated by the party against which enforcement is sought or by its authorized agent or broker. A record is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quality of goods shown in such record” (The American Law Institute and National Conference of Commissioners on Uniform State Laws, 2000).

Brian’s trains which are one of a kind must have cost $5,000 or more thus the article is in line with his favor. No contract was made and signed with his promise to sell his trains after 2 years to Harry thus no formal agreement was made between such transactions. Brian had the right to sell his trains to James. In the same Article section 202(a) entitled parol or extrinsic evidence, contracts are essential in recording the parties’ terms and agreements, formalizing such conformity through written evidence. The article states that:

“Terms with respect to which the confirmatory records of the parties agree or which are otherwise set forth in a record intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be supplemented” (The American Law Institute and National Conference of Commissioners on Uniform State Laws, 2000)

The absence of a written agreement between Brian and Harry on the sales of the trains makes Harry’s oral claims weak thus Brian wins the case.

Reference List

Legal Information Institute. (1992). Uniform Commercial Code: Article 2 Sales. Web.

The American Law Institute and National Conference of Commissioners on Uniform State Laws. (2000). Revision of Uniform Commercial Code Article 2-Sales. Web.

Towle, H. (2003). Revised UCC Articles Erect New Hurdles for E-commerce. Legal Backgrounder, 18 (16). Web.

Uniform Commercial Code. Web.

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