The Statute of Frauds is one of the provisions of the Uniform Commercial Code (UCC) that provides the guidelines for the documentation of certain contracts so that they can be enforceable. Drawing from this, it can be asserted that fraud would be the assertion in the course of litigation whereby several oral contracts have been found to be enforced inappropriately without abiding with the provisions given under the Statute of Frauds.
Basing on the transaction between Hot Coffee and the independent grocery store by the name Foods ‘r’ Us, it is important that there exists a written contract that will showcase the terms of agreement between the two parties. Deducing from the Statute of Frauds, it is clearly indicated that all sales of goods involving more than $500 to be written. Therefore, since Hot Cofee and Foods ‘r’ Us engaged in a transaction involving $1,000, there is need of having a written agreement. However, this does not mean that the written contract should be in a specific format, the Statute of Fraud requires just a written agreement regardless of the format. However, there are certain requirements that have to be met in addition to having a written agreement. Some of these requirements comprise of recognizing both parties in the agreement, the subject of the contract, the reason for having the contract and the signatures of the involved parties.
Additionally, there are moments whereby exceptions are involved in that oral agreements are allowed in making a contract in case of litigation in the future. Another exception is merchant’s exception which arises in the case whereby after a verbal agreement, one of the parties provides the other with a written confirmation. In such a case, the other party is expected to respond but if they do not respond in ten days, then the verbal agreement is considered enforceable.