Contract for Labor and Materials Galen a purchasing agent fo

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?

Solution

Generally contract means an agreement which is complied by law

agreement in the sense something in writing

As purchasing agent Orally agreed with Houk Lumber for purchase of 800 double hung vinyl windows This will not be entertained by the law

As it is contract of sale Both the parties of contract should agree upon contract in writing then only the other party will bound to the contract.

even if Houk files a suit the chances of winning the suit is zero.