Thomson Printing Company is a buyer and seller of used machinery. On April 10, the president of the company, James Thomson, went to the surplus machinery department of B.F. Goodrich Company in Akron

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Thomson Printing Company is a buyer and seller of used machinery. On April 10, the president of the company, James Thomson, went to the surplus machinery department of B.F. Goodrich Company in Akron

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Thomson Printing Company is a buyer and seller of used machinery. On April 10, the president of the company, James Thomson, went to the surplus machinery department of B.F. Goodrich Company in Akron, Ohio, to examine some used equipment that was for sale. Thomson discussed the sale, including a price of $9,000, with Ingram Meyers, a Goodrich employee and agent. Four days later, on April 14, Thomson sent a purchase order to confirm the oral contract for purchase of the machinery and a partial payment of $1,000 to Goodrich in Akron. The purchase order contained Thomson Printing’s name, address, and telephone number, as well as certain information about the purchase, but did not specifically mention Meyers or the surplus equipment department. Goodrich sent copies of the documents to a number of its divisions, but Meyers never learned of the confirmation until weeks later, by which time the equipment had been sold to another party. Thomson Printing brought suit against Goodrich for breach of contract. Goodrich claimed that no contract had existed and that at any rate the alleged oral contract could not be enforced because of the statute of frauds. Is the contract enforceable? Why or why not?

Explanation & AnswerSolution by a verified expert

Explanation

The endorsement of the trader regarding the exception to the rules of frauds may provide that a verbal contract between traders may be lawful by the sender of a written testimony in which the beneficiary of the endorsement may have reasons to know its contents. As a result, the beneficiary may not be liable to them in writing within ten days.

Verified Answer

In this case, the agreement may be legally binding, and as a result, settlement for Company T may be acknowledged.
The anomaly to the regulations of frauds can be applied here. The Company G have acknowledged the receipts of the purchase request but claimed that it was not received by anyone.

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