General Background: The Viral Clean (“Clean”) owners have questions and need clarification about several contract concepts and issues related to their new business. Specifically, they have questions about:
- the Statute of Frauds “writing requirement” and
- electronic contracts
Clean will be selling products via the internet, and the owners wonder whether these electronic contracts are valid and enforceable. TLG discusses the following case with the owners to explain the Statute of Frauds.
Background Facts You Need To Know: Company X, a company in Illinois, contracted via the internet with Windows Bright, a small window washing business in Missouri, to purchase four cases of Shiny Lite window cleaning solution at $200 per case. Company X paid via the internet with a company credit card, and an electronic contract was created. The electronic contract stated that the four cases of Shiny Lite would be shipped to Company X’s place of business in Illinois via UPS. Once UPS delivered the Shiny Lite, the contract required Windows Bright to clean Company X’s windows.
Winne and Ralph have concerns about the Statute of Frauds and electronic contracts. To respond to their concerns, you must address the following questions:
A. Discuss whether the contract between Company X and Windows Bright is subject to the requirements of the Uniform Commercial Code Statute of Frauds.
B. Analyze and explain whether the electronic internet contract between Company X and Windows Bright satisfies the “writing” requirements for the Statute of Frauds? If so, how and why?
Number each section as: