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Toll-Free: 888-269-1962
Phone: 512-646-0828
The Posey Law Firm, P.C.
Toll Free 888-269-1962 Local 512-646-0828

Does a sale of goods contract need to be in writing in order to be enforceable?



The answer to this question is complex. In the sale of goods, not all contracts need to be in writing; however, the Uniform Commercial Code (UCC) has provisions that require certain contracts to be in writing in order to be legally enforceable. These provisions, known as the Statute of Frauds, were implemented to help reduce and prevent fraud in contracts. 

Under the Statute of Frauds, any sale of goods contract over five hundred dollars has to be in writing in order to be legally enforceable. This means that if your business orally agrees to purchase coffee beans and services from another company at $600 a month, and you later decide you no longer want to continue with this arrangement, you can do so. In order for this contract to have been enforceable, the contract must be in writing because it is for an amount above the Statute of Frauds $500 writing requirement. Because the contract wasn’t in writing, you can change your mind. However, if the same oral contract was for $300 and you decide to back out, you may be liable under the Statute of Frauds. 

In order to understand sale of good contracts and how they relate to the Uniform Commercial Code, or if you have a UCC legal matter over a contract, an experienced UCC attorney in Texas can help you with your sale of goods dispute. Learn more about your rights and how to protect your business interests here from an Austin commercial and business law firm and find out how to recover any losses you have suffered. Call the Posey Law Firm toll-free at 888.269.1962 or locally at 512-646-0828 for a complimentary consultation today.

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