Cathy's China Shop ordered 3 shipments of handmade dinner ware from Pam's Pottery. The shipments were to be made on May 1, July 1, and October 1. The price was $600 per shipment, payable by the 15th of the month. The agreement between Cathy and Pam was entirely oral. Cathy accepted the first shipment, but has not paid for it, and she has cancelled the July and October shipments. Pam has filed suit for breach of contract. Cathy contends that the oral agreement is not enforceable and that she has no liability for the first shipment. How will the court resolve this dispute?
a. The contract is not enforceable: Cathy need not pay for the first shipment and may cancel the 2nd and 3rd shipments.
b. The contract is not enforceable: Cathy need only pay the fair value, not the contract price, for the first shipment and may cancel the 2nd and 3rd shipments.
c. The contract is a Code exception to the Statute of Frauds: Cathy must pay $600 for the first shipment and must accept and pay for the 2nd and 3rd shipments.
d. The contract is a Code exception to the Statute of Frauds: Cathy must pay $600 for the first shipment, but she has no obligation to accept or pay for the 2nd and 3rd shipments.
Ans: d. The contract is a Code exception to the Statute of Frauds: Cathy must pay $600 for the first shipment, but she has no obligation to accept or pay for the 2nd and 3rd shipments.
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