MBE Rules · Contracts
Statute of Frauds — sale of goods $500+
UCC §2-201
The rule
A contract for the sale of goods for $500 or more must be in a writing sufficient to indicate a contract, signed by the party to be charged. The writing need not state all terms — but the contract is enforceable only to the quantity stated in the writing.
In plain English
If you're buying or selling goods worth $500 or more, you need a written agreement signed by the person you're holding to the deal. The document doesn't need all the details, but it must mention the amount of goods.
Worked example
The buyer agrees to purchase 100 widgets for $600 from the seller. They both sign a note saying '100 widgets.' If the seller delivers only 80, the buyer can enforce the contract for 100 widgets because the note specifies that amount.
Memory hook
Five Hundred? Write or Bust! Sales over $500 need a signed writing to enforce.
The trap
Students think: All terms must be in writing. Wrong, because only quantity is required. The actual test is whether the writing indicates a contract and is signed.
How examiners test it
Test setup: oral agreement for goods over $500, partial payment made. Trap: assuming partial payment makes it enforceable. Look for a signed writing indicating quantity.
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