Legal Question in Business Law in Texas

Re: Verbal Agreements

The first question is whether he accepted your offer, and if so, whether the deal was made subject to payment within a set period of time (e.g. within the five-day period). If the offer was not accepted, then he had no deal, or if the deal was subject to his paying you within the five-day period, then he has not lived up to the conditions to make a deal. If a deal was made and he has not breached by unreasonably delaying his performance, then he has an enforceable contract, subject to 2-201 of the Uniform Commercial Code. The $500 provision is not a slam-dunk defense. See 2.201(c)(2) below. If you admit in your lawsuit pleadings, in your testimony, or otherwise in a lawsuit that a deal was made, then the $500 provision would not be applicable.

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� 2.201. Formal Requirements; Statute of Frauds

(a) Except as otherwise provided in this section a contract for the sale of goods for the price of $ 500 or more 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 authorized 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 such writing.

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(c) A contract which does not satisfy the requirements of Subsection (a) but which is valid in other respects is enforceable

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(2) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or

(3) with respect to goods for which payment has been made and accepted or which have been received and accepted (Section 2.606).