PART 2. 
FORM, FORMATION AND READJUSTMENT OF CONTRACT



 



§490:2-201  Formal requirements; statute of
frauds.  (1)  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.



(2)  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 (1) against such party unless
written notice of objection to its contents is given within ten days after it
is received.



(3)  A contract which does not satisfy the
requirements of subsection (1) but which is valid in other respects is
enforceable:



(a) 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



(b) 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



(c) With respect to goods for which payment has been
made and accepted or which have been received and accepted (section 490:2-606).
[L 1965, c 208, §2-201; HRS §490:2-201]



 



Case Notes



 



  Defendant's motion to dismiss based on statute of frauds
denied.  691 F. Supp. 247.



  Validation of contract by receipt and acceptance of goods.  2
H. App. 253, 630 P.2d 638.



  Subsection (3)'s specially manufactured goods exception
applied to orally modified contract if seller and remaining goods described in
orally modified contract satisfied the five requirements specified in
subsection (3)(a).  10 H. App. 368, 874 P.2d 1100.