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Oregon Bar: Contracts and Sales

Oregon Bar · Work through your exam, one topic at a time.

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Contracts and Sales

Contracts and Sales tests common-law contract formation and UCC Article 2, enacted in Oregon as ORS chapter 72. Expect offer, acceptance, consideration, defenses, statute of frauds, parol evidence, breach, and remedies, plus Oregon-specific limits on noncompetition covenants under ORS 653.295.

Core rules

  • Common law requires mutual assent and consideration; UCC 2-204 allows formation by any manner showing agreement, and 2-207 handles additional or different terms.
  • Statute of frauds: ORS 41.580 covers land, suretyship, marriage, executor promises, and one-year contracts; UCC 2-201 covers goods of $500 or more.
  • UCC 2-201(2) merchant confirmation can satisfy the goods statute if both parties are merchants, the writing is sufficient, and no objection is made within 10 days.
  • Remedies: expectation damages, consequential damages if foreseeable, cover, and UCC 2-712; liquidated damages must be reasonable.

Worked example

Seller orally agrees to sell a used tractor for $7,000. Buyer, a dealer, sends a signed purchase order stating quantity and price; Seller, also a merchant, receives it and says nothing for two weeks, then refuses to deliver. The oral deal alone fails UCC 2-201, but the signed merchant confirmation can satisfy the statute if it is sufficient and Seller did not object within 10 days. Buyer may seek cover damages under UCC 2-712. Reasoning: classify the goods, test the statute, then apply the merchant exception.

Traps

Do not apply UCC 2-207 to common-law contracts; do not treat the statute of frauds as making an oral contract void for all purposes; do not enforce a noncompete without the ORS 653.295 salary, timing, and scope limits; do not confuse expectation and reliance damages.