Contract for Labor and Materials Galen, a purchasing agent for Ziff Construction Company, agreed orally with Houk Lumber to purchase 800 double - hung vinyl windows. The agreed price was $40,000. When Ziff Construction lost its financial backing, it had to cancel its plans for the houses it had planned to build. Houk sued to collect the purchase price. a. Was this a contract for sale? b. Was this a contract for labor and materials? c. Did the contract meet the Uniform Commercial Code requirement of writing? d. Is it likely that Houk would win the lawsuit?

Question

Business

Ivan Mcguire

30 August, 07:52

Contract for Labor and Materials Galen, a purchasing agent for Ziff Construction Company, agreed orally with Houk Lumber to purchase 800 double - hung vinyl windows. The agreed price was $40,000. When Ziff Construction lost its financial backing, it had to cancel its plans for the houses it had planned to build. Houk sued to collect the purchase price. a. Was this a contract for sale? b. Was this a contract for labor and materials? c. Did the contract meet the Uniform Commercial Code requirement of writing? d. Is it likely that Houk would win the lawsuit?

+4

Answers (2)

Know the Answer?

Mollie Carson · Answer 1

a. Was this a contract for sale?

If this contract had been written and signed by both parties, then it would have been a valid contract for sale. It included the purchase of a specific amount of goods at a specific price.

b. Was this a contract for labor and materials?

No, because it was specific about the price of the windows.

c. Did the contract meet the Uniform Commercial Code requirement of writing?

No it doesn't. UCC requires that all contracts above $500 are written. In the case of merchants that carry out regular operations, they must be able to provide some type of written proof, e. g. an email requesting materials.

d. Is it likely that Houk would win the lawsuit?

No, they will probably lose because they do not have a valid contract.

Karen Wade · Answer 2

a) It is not a contract for sale

Contract for sale is a legally binding agreement between a buyer and a seller where a buyer decides to buy an item at an agreed price. There is no enough evidence to justify a legal binding in the transaction.

b) It is not a contract for labor and materials.

In contract for labor and materials, there is a legally binding agreement between two parties where the buyer agrees to provide some services and the contractor provides the materials and labor,

C) It does not conform with the Uniform Commercial Code requirement of writing. For a contract to be binding, it must be written with all conditions stated and duly signed by two parties.

D) Houk would not win the law suit as oral contracts are not legally enforceable unless it meets various contact formation standards, which are missing in the scenario.