Statute of Frauds. R-P Packaging, Inc, is a manufacturer of cellophane wrapping material. The plant manager for Flowers Baking Co decided to improve the company's packaging of cookies. The plant manager contacted R-P Packaging regarding the possible

Question

purchase of cellophane wrap imprinted with designed "artwork." R-P took measurements to determine the appropriate size of the wrap and submitted to Flowers a sample of wrap conforming to the measurements, along with a sample of the artwork to be imprinted. After agreeing that the artwork was satisfactory, Flowers gave a verbal order to R-P for the designed cellophane wrap at a price of $13,000. When the wrap was tendered, although it conformed to the measurements and design, Flowers complained that the wrap was too short and the design off-center. Flowers rejected the shipment. R-P sued. Flowers contended that the oral contract was unenforceable under the Statute of Frauds. Discuss this contention.

Answer 1

Statute of Frauds
Under the Statute of Frauds, any contract for the sale of goods priced at $500 or more must be in writing, or come under an applicable exception, to be enforceable. One such exception deals with oral contracts for the sale of goods to be specially manufactured (goods not suitable for sale to others in the normal course of the seller's business). The law provides that if the seller has made a substantial beginning in the manufacture of the specially ordered goods, no writing is required. Here, the cellophane wrapping material was manufactured to size and had unique artwork imprinted thereon. The goods had been completely manufactured. Therefore, Flowers cannot raise the Statute of Frauds as a defense against R P's breach of contract action.