Sec. 42a-2-201. Formal requirements; statute of frauds.
Sec. 42a-2-201. Formal requirements; statute of frauds. (1) Except as otherwise
provided in this section a contract for the sale of goods for the price of five hundred
dollars 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.
(2) Between merchants if within a reasonable time a writing in confirmation of the
contract and sufficient against the sender is received and the party receiving it has reason
to know its contents, it satisfies the requirements of subsection (1) against such party
unless written notice of objection to its contents is given within ten days after it is
received.
(3) A contract which does not satisfy the requirements of subsection (1) but which
is valid in other respects is enforceable (a) if the goods are to be specially manufactured
for the buyer and are not suitable for sale to others in the ordinary course of the seller's
business and the seller, before notice of repudiation is received and under circumstances
which reasonably indicate that the goods are for the buyer, has made either a substantial
beginning of their manufacture or commitments for their procurement; or (b) 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 (c) with respect to goods for which
payment has been made and accepted or which have been received and accepted as
provided by section 42a-2-606.
(1959, P.A. 133, S. 2-201.)
Cited. 174 C. 535. Cited. 198 C. 624.
Although under statute, oral agreements for the sale of goods priced at or above $500 are presumptively unenforceable,
certain oral agreements are enforceable. Namely, oral agreements for the sale of "specially manufactured goods" that meet
a four-part standard discussed by the court are enforceable. 70 CA 477.
Subsec. (3):
Subdiv. (a) cited. 183 C. 266.