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Bazak International Corp. v. Mast Industries, Inc. | 73 N.Y.2d 113 (1989)
Under Article 2 of the Uniform Commercial Code, which governs contracts for the sale of goods, the statute of frauds renders certain oral contracts unenforceable. But the statute of frauds has exceptions, which the New York Court of Appeals explored in Bazak International Corporation versus Mast Industries.
In April of 1987, Karen Fedorko, marketing director for Mast Industries, and Tuvia Feldman, president of Bazak International, orally negotiated an arrangement under which Mast would sell textiles to Bazak for over $100,000. The parties came to an oral agreement, after which Fedorko promised that Mast would send invoices the next day and deliver the textiles soon after.
The invoices never came. But a few days after the oral agreement, Fedorko instructed Feldman to send 5 purchase orders to Mast’s office in Massachusetts. Upon receiving the orders, Mast confirmed receipt and made no objection to the terms in the purchase orders.
Collectively, the purchase orders, with Fedorko’s handwritten notations, stated various types and quantities of textiles, indicated the price, and were signed by Bazak. Mast never signed them. They also indicated, in small-print boilerplate, that they were only offers and not contracts, unless Bazak, referenced as seller, accepted them.
Mast never delivered the textiles. Bazak sued Mast for breach of contract and fraud in New York state court. The trial court denied Mast’s motion to dismiss. On appeal, the New York Supreme Court, Appellate Division, reversed, holding that Article 2’s statute of frauds precluded the contract claim. The New York Court of Appeals granted cert.
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