The absence of a writing does not always bar proof of a sales contract.
- Nonresellable Goods. No writing is required when the goods are specially made for the buyer and are of such an unusual nature that they are not suitable for sale in the ordinary course of the seller’s business. For example, four reinforced steel doors were custom made by the seller for the buyer‘s building. The doors were not suitable for sale to anyone else in the ordinary course of the seller’s business, and they could only be sold as scrap. In this case, an oral contract of sale could be enforced. In order for the nonresellable goods exception to apply, the seller must have made a substantial beginning in manufacturing the goods or, if a distributor, in procuring them, before notice of repudiation by the buyer is received.
- Receipt and Acceptance. An oral sales contract may be enforced if it can be shown that the goods were delivered by the seller and were both received and accepted by the buyer. Therefore, if the buyer receives and accepts goods on credit, the seller may sue for the purchase price, even if it is over $500 and there is no writing. The receipt and acceptance of the goods by the buyer took the contract out of the statute of frauds. Both a receipt and an acceptance by the buyer must be shown.
- Payment. An oral contract may be enforced if the buyer has made full payment. In the case of part payment for divisible units of goods, a contract may be enforced only with respect to the goods for which payment has been made and accepted. If part payment is made for indivisible goods, such as an automobile, a part payment avoids the statute of frauds and permits proof of the entire oral contract.
Admission. An oral contract may be enforced if the party against whom enforcement is sought admits in pleadings, testimony, or otherwise in court that a contract for sale was made. The contract, however, is not enforceable beyond the quantity of goods admitted.