Business Degree Certification Practice Test

Under the UCC statute of frauds, which of the following must be included in writing?

1. The price of the goods

2. The quantity of the goods

3. The signatures and names of the buyer and the seller

4. The time and place for delivery

The correct answer is: The quantity of the goods

Under the UCC (Uniform Commercial Code) statute of frauds, the requirement for a written contract in the sale of goods primarily focuses on the quantity of goods involved in the transaction. This is because the statute of frauds is intended to prevent misunderstandings and fraudulent claims in contracts by ensuring that certain essential terms are confirmed in writing. The quantity is a critical element because it specifies the amount of goods that are being sold and thus determines the scope of the transaction. Without specifying the quantity, the agreement lacks clarity and enforceability, which is why it must be documented. While other elements, such as price, signatures, and delivery details, are important in a comprehensive contract, the UCC specifically mandates that the quantity must be included in writing for contracts involving the sale of goods exceeding a certain monetary threshold (generally $500 or more). Thus, the inclusion of quantity serves as a safeguard against potential disputes regarding the specifics of the agreement.