Cost Accounting Analysis Essay Example

as it is mailed. In this case, there was an oral contract that was later confirmed in writing. The enforcement of this contract falls under the Uniform Code and applies specifically to Schreiner since he is a merchant.

15. Gray Communications, the defendant, wanted to construct a television tower. After several phone negotiations with Kline Iron, the plaintiff, it is claimed that both parties came to an oral agreement. According to this agreement, the plaintiff would build a tower for the defendant for a total price of $1,485,368. Shortly after, the plaintiff sent a written proposal document to the defendant for signing.

The plaintiff initially presented a proposal to the defendant, which could be altered or revoked prior to formal acceptance. However, the defendant subsequently notified the plaintiff about a rival company's lower bid for building the tower, without accepting the original proposal. The defendant asked for an explanation regarding the higher bid price from the plaintiff, but no justification was given.

The plaintiff started legal proceedings after receiving a letter from the defendant informing them that they would not be hired to build the tower. The lawsuit alleges that there was a breach of an oral agreement and asserts that this agreement can be enforced under common law instead of the Uniform Commercial Code (UCC). The plaintiff argues that this transaction does not need to adhere to common law. Alternatively, if the UCC is applicable, they contend that it falls within the "merchant's exception" provision. The main question at hand is whether or not the contract can be upheld.

The contract cannot be enforced because of the defendant's

written proposal. The proposal stated that the contract could be changed or canceled before the defendant formally accepted it. Regardless of why the plaintiff terminated it, as long as they gave written notice to the defendant and the contract was still not accepted.