Asked by Aaron Morris on Apr 25, 2024
Verified
The CEO of Intermountain Medical Equipment and the VP of Purchasing at ValleyCare Hospital in Boise entered into an oral agreement to manufacture 15 oversized electric/pneumatic gurneys for the operating room at ValleyCare Hospital in Boise,at a cost of $6,000 each,total contract price of $90,000.The gurneys were made to the specific instructions of ValleyCare and could not be easily sold to another hospital.After the gurneys were manufactured,ValleyCare can refuse to take them on the grounds that the oral contract was unenforceable.
Oral Agreement
A verbal contract in which the terms are agreed upon through spoken communication rather than in writing.
Specific Instructions
Detailed directions or orders issued for performing a particular task or operation.
Unenforceable
Refers to a contract or clause that, due to legal reasons, cannot be executed or enforced by law.
- Recognize the enforceability and contract terms under the Uniform Commercial Code (UCC).
- Identify the differences between special types of contracts, such as oral contracts, auctions, and sales of goods.
Verified Answer
MD
Martin Duron6 days ago
Final Answer :
False
Explanation :
The contract in this scenario may be considered enforceable under the exception to the Statute of Frauds for specially manufactured goods. Since the gurneys were made to the specific instructions of ValleyCare and could not be easily sold to another hospital, this exception could apply, making the oral contract enforceable despite its lack of written form.
Learning Objectives
- Recognize the enforceability and contract terms under the Uniform Commercial Code (UCC).
- Identify the differences between special types of contracts, such as oral contracts, auctions, and sales of goods.