Statute of Frauds. SNK, Inc, makes video arcade games and sells them to distributors, including Entertainment Sales, Inc (ESI). Most sales between SNK and ESI were phone orders. Over one four-month period, ESI phoned in several orders for "Samurai
Showdown" games. SNK did not fill the orders. ESI filed a suit against SNK and others, alleging, among other things, breach of contract. There was no written contract covering the orders. ESI claimed that it had faxed purchase orders for the games to SNK but did not offer proof that the faxes had been sent or received. SNK filed a motion for summary judgment. In whose favor will the court rule, and why?
Statute of Frauds
The trial court granted a summary judgment in favor of SNK, and Entertainment appealed. The state intermediate court of appeals affirmed, holding that any agreement between the parties was unenforceable under the UCC's Statute of Frauds. The court explained that there was no written contract between the parties, and that ESI's purchase order forms did not qualify as confirmations of any oral contracts. This was because there was no proof that SNK received the purchase orders that ESI claimed to have sent.
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