UCC statute of frauds for sales of goods
Yes, and it applies at exactly $500 as well: "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." U.C.C. § 2-201(1)1
- A thin writing is enough — A writing "is not insufficient because it omits or incorrectly states a term agreed upon," but the contract is not enforceable beyond the quantity of goods shown. U.C.C. § 2-201(1)1
- Merchant confirmations — Between merchants, a written confirmation that binds the sender also binds a recipient who has reason to know its contents unless the recipient objects in writing "within 10 days after it is received." U.C.C. § 2-201(2)1
- Three exceptions — An oral contract is enforceable (a) for specially manufactured goods once the seller has substantially begun manufacture or procurement; (b) to the extent the defendant admits the contract "in his pleading, testimony or otherwise in court"; and (c) for goods paid for and accepted or received and accepted. U.C.C. § 2-201(3)1
- States enacted the $500 figure — The threshold is the official text, and states adopted it by statute. Texas, for example, enacts it word for word ("for the price of $500 or more"). Tex. Bus. & Com. Code § 2.201(a)2
- Watch for local variations — New York keeps the $500 rule but adds a subsection exempting certain "qualified financial contract[s]." N.Y. U.C.C. Law § 2-201(4)3
- Electronic records count — Under Texas's UETA, "[i]f a law requires a record to be in writing, an electronic record satisfies the law," and an electronic signature satisfies a signature requirement. Tex. Bus. & Com. Code § 322.007(c)–(d)4
Practice notes
- The 2003 revision of Article 2 is marked "WITHDRAWN." The original text, with its $500 threshold, is still the operative model, so always cite the enacting state's own section. LII, U.C.C. older versions5