Legal Question in Technology Law in California

Re: boats

I'm wondering why you asked this question under the computer and technology law heading. Is there some missing fact that places it in this category? Normally I would expect this to appear under a business or contracts law heading.

Anyway, unless I'm missing something, I can give you a fairly general answer. First, the law refers to unwritten (spoken) agreements as "oral" contracts, not "verbal," I guess because the original meaning of "verbal" was "in words" and words can be written as well as spoken.

There are several limitations of the enforceability of oral contracts. One of them is the so-called "Statute of Frauds," which is actually a set of statutes and common-law principles, not just one statute. One part of the Statute of Frauds package is found in the Uniform Commercial Code, and covers the sale of goods by oral contract.

Section 2201 of the Commercial Code says:

"(1) Except as otherwise provided in this section a contract for the sale of goods for more than $500 is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his or her agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in the writing."

There are further paragraphs to UCC 2301 that make modifications and exceptions to the basic principle, and other applicable laws might be scattered here and there, for example, in the Harbors and Navigation Code. An important exception is that if the other party admits in a court pleading that the contract exists, he is bound by it as though he signed it.

Another problem with oral contracts is that it is difficult to prove the terms in court. The defendant may argue that he had a different boat in mind, or a different price or payment terms, etc.

So, basically, I'd say the agreement can't be enforced unless there is an exception to the Statute of Frauds that covers it, and there well may be such an exception.