MEMC supplied BP Solar with silicon powder used in manufacturing solar panels under a long-standing relationship. Seeking

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MEMC supplied BP Solar with silicon powder used in manufacturing solar panels under a long-standing relationship. Seeking to get a long-term contract, BP Solar emailed MEMC to ask for a quote for 300 tons for three years. MEMC said it could commit to 150 tons for the next three years at $3.50/kg for the next year and the price for the following two years to be negotiated. Thereafter, they talked by phone. An internal memo was circulated, with a copy to BP, stating that it was anticipated that a larger quantity would be available and that pricing would be determined later. 


BP emailed the next day, “I agree with [the] comments below.” After a few more email exchanges, MEM  shipped 224 tons. It then discontinued its shipments and BP Solar sued for breach of contract. MEMC argued there was no contract because the parties were still negotiating, particularly regarding the price, and that there was no signed writing from BP Solar. Was there sufficient evidence of a contract to satisfy the UCC statute of frauds? Why?

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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