Author Question: Newlog, which had developed a new process for making artificial logs, entered into an oral contract ... (Read 30 times)

jrubin · **on:** Jun 24, 2018

Newlog, which had developed a new process for making artificial logs, entered into an oral contract with Specialty Manufacturing. The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log machinery. The contract provided that Specialty would make the part to Newlog's specifications. Newlog orally agreed to pay 5,000 for the part. Specialty made the part to Newlog's specifications, but Newlog refused to pay, claiming that the oral contract was unenforceable because of the statute of frauds. Is Newlog correct?

Question 2

For delivery of a deed to be valid:
A)The grantor must have the intent to deliver.
B)The deed cannot be delivered to a third party agent.
C)The grantor must personally deliver the deed.
D)None of the above

tmlewis4706 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

No. Judgment will be for Specialty. The nonresellable goods exception to the UCC statute of frauds applies because the part was specially-made for Newlog, and the part was not suitable for sale to anyone else in the course of Specialty's business and could otherwise only be sold as scrap. Thus, because Specialty had already made the part, the oral contract is enforceable, and Specialty can recover the full contract price.

Answer to Question 2

A