Asked by giannah alessandra on May 03, 2024
Verified
Merchant A orally enters into a $1,000 contract with Merchant B.Merchant B will not be legally bound if she sends a confirmation,because Merchant A did not sign it,but she did object to it 3 days after she received the written confirmation.Merchant A sends out a conforming shipment the following week.The merchants have a binding agreement.
Written Confirmation
A documented acknowledgment that verifies and details the contents of a previous agreement or conversation.
Binding Agreement
A legal contract or decision that is enforceable in a court of law between two or more parties.
Merchant
An individual or business that sells goods or services in a commercial transaction.
- Acknowledge the binding nature and clauses of contracts within the scope of the Uniform Commercial Code (UCC).
- Recognize the differences among specialized contract types, such as oral agreements, auction systems, and the trade of products.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
True
Explanation :
Although Merchant A did not sign the confirmation, they did not object to it within a reasonable amount of time. According to the Uniform Commercial Code (UCC), an objection must be made within a "reasonable amount of time" after receiving the confirmation. Three days is likely considered a reasonable amount of time, and therefore Merchant B is bound by the contract. The fact that Merchant A sent out a conforming shipment also suggests acceptance of the contract.
Learning Objectives
- Acknowledge the binding nature and clauses of contracts within the scope of the Uniform Commercial Code (UCC).
- Recognize the differences among specialized contract types, such as oral agreements, auction systems, and the trade of products.