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Texas Business & Commerce Code - Section 2.201. Formal Requirements; Statute Of Frauds

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 2.201. Formal Requirements; Statute Of Frauds

§ 2.201. FORMAL REQUIREMENTS;  STATUTE OF FRAUDS.  (a) 
Except as otherwise provided in this section a contract for the sale 
of goods for the price of $500 or more is not enforceable by way of 
action or defense unless there is some writing sufficient to 
indicate that a contract for sale has been made between the parties 
and signed by the party against whom enforcement is sought or by his 
authorized agent or broker.  A writing is not insufficient because 
it omits or incorrectly states a term agreed upon but the contract 
is not enforceable under this paragraph beyond the quantity of 
goods shown in such writing.
	(b)  Between merchants if within a reasonable time a writing 
in confirmation of the contract and sufficient against the sender 
is received and the party receiving it has reason to know its 
contents, it satisfies the requirements of Subsection (a) against 
such party unless written notice of objection to its contents is 
given within ten days after it is received.
	(c)  A contract which does not satisfy the requirements of 
Subsection (a) but which is valid in other respects is enforceable
		(1)  if the goods are to be specially manufactured for 
the buyer and are not suitable for sale to others in the ordinary 
course of the seller's business and the seller, before notice of 
repudiation is received and under circumstances which reasonably 
indicate that the goods are for the buyer, has made either a 
substantial beginning of their manufacture or commitments for their 
procurement;  or
		(2)  if the party against whom enforcement is sought 
admits in his pleading, testimony or otherwise in court that a 
contract for sale was made, but the contract is not enforceable 
under this provision beyond the quantity of goods admitted;  or
		(3)  with respect to goods for which payment has been 
made and accepted or which have been received and accepted (Section 
2.606).

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.           

Last modified: August 10, 2007