In this video, I discuss defense under the uniform commercial code.
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Under common law, if fraud is involved in a contract, the party that has been deceived can choose to either sue for damages or request the contract to be rescinded (cancelled). Similarly, under the Uniform Commercial Code (UCC), particularly in its Sales Article, a party can also choose to cancel the contract and sue for monetary damages if they've been defrauded.



Under the Uniform Commercial Code (UCC), contracts for the sale of goods priced at $500 or more usually need to be in writing and signed by the party against whom the contract is enforced. However, there are four key exceptions to this rule:

Specially Manufactured Goods: This exception applies to goods that are custom-made and not suitable for sale to others. For example, a contract for custom bowling shirts embroidered with a specific team name would fall under this category. Even if this contract is not in writing, it can still be enforceable because the goods are uniquely made for a particular buyer.

Merchant's Confirmatory Memo Rule: When one merchant sends another merchant a written confirmation of an oral contract, this written confirmation is sufficient to make the contract enforceable, provided the recipient does not object within 10 days. For instance, if Randy Retailer verbally orders $600 worth of goods from Wendy Wholesaler and then sends a signed written confirmation of this order, Wendy must object within 10 days if she disagrees; otherwise, the contract is enforceable even though she didn’t sign it.

Admission in Court: If during a legal proceeding, the parties admit that a contract existed, this admission can serve as an exception to the writing requirement. For example, if in court, a party acknowledges the existence of an oral contract for the sale of goods over $500, this admission can make the contract enforceable.

Partial Performance: If part of the contract has already been performed and accepted, the contract is enforceable to the extent of that performance. For instance, if there's an oral agreement to sell 200 widgets at $5 each, and 150 of these widgets have been delivered and accepted, the contract is enforceable for the 150 widgets, even though the entire contract was not in writing.

These exceptions are designed to address situations where it would be unfair or impractical to strictly enforce the requirement of a written contract.


When a sales contract is altered, the need for a written agreement is determined based on the terms of the modified contract, not the original one. This means that if the modified contract falls below certain thresholds (like the $500 threshold for a written contract under the UCC), it might not require a written form to be enforceable.

For example, consider a situation where Carla and Dave have a written contract where Carla agrees to buy 100 chairs from Dave for $6 each, totaling $600. Later, Carla requests to reduce the price to $4 per chair, and Dave agrees. The total cost of the contract now becomes $400 (100 chairs at $4 each). Even though the original contract required a writing due to its value being over $500, the modified contract does not require a new written agreement since its value is now under $500. This modification is valid and enforceable even if it's not in writing, given the reduced total price.

Under the Uniform Commercial Code (UCC), the requirements for a written contract are less stringent than under common law. In common law, a written contract must include all essential terms of the agreement. However, the UCC allows for more flexibility, particularly for contracts related to the sale of goods.

Under the UCC, it's not necessary for the written contract to specify every single term of the agreement. Certain terms can be left out, and in their absence, standard or reasonable terms are assumed. For instance, if the contract doesn't specify the price, a reasonable price will be assumed, and if it doesn't mention the place of delivery, it's understood to be the seller's place of business.

However, there are two critical terms that cannot be omitted for a contract to be enforceable under the UCC:

Quantity Term: The contract must specify the quantity of goods involved. This is essential because it defines the scope of the contract. The exception to this is in the case of output or requirement contracts, where the quantity is determined by the buyer's requirements or the seller's output.

Signature Term: The contract must be signed by the party against whom enforcement is sought.







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