Adam and Bob entered into a written contract in which Adam agreed to deliver 100 units of a specific product to Bob for $10,000. Shortly afterward, Adam discovered that his cost of obtaining the product had risen because of an unforeseen supply-chain disruption. Adam asked Bob to pay $12,000 instead of $10,000. Bob orally agreed to the higher price. Adam delivered the 100 units, and Bob accepted them but tendered only $10,000. Adam sues Bob for the additional $2,000. Which of the following BEST explains the legal outcome?
The modification is enforceable because good-faith modifications of goods contracts do not require additional consideration under the UCC.
The modification is unenforceable because common-law contract doctrine requires new consideration for any modification.
The modification is unenforceable because the oral price increase fails to satisfy the UCC Statute of Frauds, which requires a signed writing for sales of goods of $500 or more.
The modification is enforceable because Bob accepted the goods after agreeing to the higher price.
Because the agreement involves the sale of goods, Article 2 of the UCC applies. Under UCC § 2-209(1), a modification of a sales contract is effective without additional consideration if it is made in good faith. However, § 2-209(3) requires that a modification satisfy the UCC Statute of Frauds (§ 2-201) when, as modified, the contract is for $500 or more. The original writing does not evidence the new $12,000 price, and no separate signed writing reflects that change. Therefore the oral price increase fails the Statute of Frauds and is unenforceable; Adam is entitled only to the original $10,000 price. The other options are incorrect because (1) absence of consideration is not a bar under the UCC, (2) oral assent alone does not overcome the Statute of Frauds for a price term, and (3) good-faith commercial justification does not excuse non-compliance with § 2-201.
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