Bob\'s Store orders 100 widgets at a price of $125 per widget from Widgets, Inc.
ID: 354484 • Letter: B
Question
Bob's Store orders 100 widgets at a price of $125 per widget from Widgets, Inc. Bob's Store later wants to cancel its order, but Widgets, Inc. refuses to agree to the cancellation. In an effort to keep its good customer happy, Widgets offers to reduce the price per widget to $75. Bob's Store agrees to that. Select the best answer from the following: A. This contract falls outside the statute of frauds and no evidence of a writing is required. B. This contract falls within the statute of frauds and must be evidenced by a writing. C. Bob pays $100 per widget because he gave no new consideration for the reduction in price from $100 to $75 per widget. D. Bob pays $75 per widget because an agreement for the sale of goods needs no consideration to be binding. E. Both B & D are correct. Bob's Store orders 100 widgets at a price of $125 per widget from Widgets, Inc. Bob's Store later wants to cancel its order, but Widgets, Inc. refuses to agree to the cancellation. In an effort to keep its good customer happy, Widgets offers to reduce the price per widget to $75. Bob's Store agrees to that. Select the best answer from the following: Bob's Store orders 100 widgets at a price of $125 per widget from Widgets, Inc. Bob's Store later wants to cancel its order, but Widgets, Inc. refuses to agree to the cancellation. In an effort to keep its good customer happy, Widgets offers to reduce the price per widget to $75. Bob's Store agrees to that. Select the best answer from the following: This contract falls outside the statute of frauds and no evidence of a writing is required. This contract falls within the statute of frauds and must be evidenced by a writing. Bob pays $100 per widget because he gave no new consideration for the reduction in price from $100 to $75 per widget. Bob pays $75 per widget because an agreement for the sale of goods needs no consideration to be binding. Both B & D are correct. A. This contract falls outside the statute of frauds and no evidence of a writing is required. B. This contract falls within the statute of frauds and must be evidenced by a writing. C. Bob pays $100 per widget because he gave no new consideration for the reduction in price from $100 to $75 per widget. D. Bob pays $75 per widget because an agreement for the sale of goods needs no consideration to be binding. E. Both B & D are correct.Explanation / Answer
Since the purchase amount exceeds the $500 amount that statute of fraud States requires a contract in binding we can say that B. This contract falls within the statute of frauds and must be received in writing.