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Cloud Corp. v. Hasbro: Difference between revisions
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{{Infobox Case Brief | {{Infobox Case Brief | ||
|court=United States Court of Appeals for the Seventh Circuit | |court=United States Court of Appeals for the Seventh Circuit | ||
|date= | |date=2002-12-26 | ||
|subject= | |subject=Contracts | ||
|facts=Cloud Corporation ("Cloud") & [https://corporate.hasbro.com/en-us Hasbro Incorporated] engage in casual communications in the form of e-mail. | |||
|facts= | |||
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 [https://www.ca7.uscourts.gov/ 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 [https://www.law.cornell.edu/ucc Uniform Commercial Code] (UCC)'s statute of frauds requires sales of goods over $500 (last figure based on inflation) to be signed. | |rule=The [https://www.law.cornell.edu/ucc Uniform Commercial Code] (UCC)'s statute of frauds requires sales of goods over $500 (last figure based on inflation) to be signed. | ||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://www.quimbee.com/cases/cloud-corp-v-hasbro-inc | |link=https://www.quimbee.com/cases/cloud-corp-v-hasbro-inc | ||
|case_text_source=Quimbee | |source_type=Video summary | ||
|case_text_source=Quimbee | |||
}}{{Infobox Case Brief/Case Text Link | }}{{Infobox Case Brief/Case Text Link | ||
|link=https://casetext.com/case/cloud-corp-v-hasbro-inc | |link=https://casetext.com/case/cloud-corp-v-hasbro-inc | ||
Latest revision as of 03:42, July 14, 2023
| 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.
