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Cloud Corp. v. Hasbro: Difference between revisions
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Hasbro would transmit purchase orders to Cloud via e-mail; Cloud would reply to confirm the order. | 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 over 9 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 |
Revision as of 14:53, April 13, 2023
Cloud Corp. v. Hasbro | |
Court | United States Court of Appeals for the Seventh Circuit |
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Citation | |
Date decided | December 26, 2002 |
Facts
Cloud Corporation ("Cloud") & Habro 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 over 9 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.