Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 21

The Statute of Frauds. Kendall Gardner agreed to buy a specially built mill to produce wood shavings for poultry processors from James Bowen and Richard Cagle, doing business as B C Shavings. B C faxed an invoice to Gardner reflecting a purchase price of $86,200, with a 30 percent down payment and the "balance due before shipment." Gardner paid the down payment. B C finished the mill and wrote a letter to Gardner telling him to "pay the balance due or you will lose the down payment." By then, Gardner had lost his customers for the wood shavings, could not pay the balance due, and asked for the return of his down payment. Did these parties have an enforceable contract under the Statute of Frauds? Explain. [ Bowen v. Gardner, 2013 Ark.App. 52 (2013)] (See The Formation of Sales and Lease Contracts.)