Cloud Corp. v. Hasbro
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| Cloud Corp. v. Hasbro | |
| Court | United States Court of Appeals for the Seventh Circuit |
|---|---|
| Citation | |
| Date decided | 2002-12-26 |
Facts
Cloud Corporation ("Cloud") & Hasbro Incorporated engage in casual communications in the form of e-mail.
Hasbro, a toymaker, engaged with "Cloud" to produce powder packets for aquariums.
Hasbro would transmit purchase orders to Cloud via e-mail; Cloud would reply to confirm the order.
Over time, the popularity of the toy aquariums waned; Hasbro sent Cloud an 8.4 million order packet.
After several intermediate occurrences, Hasbro refused to accept a Cloud delivery for 9.5 million powder packets.Procedural History
Cloud sued for breach of contract; Hasbro wins in the trial court.
Cloud appealed to the 7th Circuit.Issues
Can informal e-mails create a contract modification that satisfies UCC's statute of frauds?
Holding
Yes. A modification to a contract via e-mail bearing the sender's name can satisfy the UCC's statute of frauds.
Rule
The Uniform Commercial Code (UCC)'s statute of frauds requires sales of goods over $500 (last figure based on inflation) to be signed.
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