Thank You For Submiting Feedback!
Nev. Rev. Stat. § 104.2201(2) provides that the confirming memorandum must be sent within a reasonable time after the oral contract is made.
Appellant J. L. Azevedo is a rancher who buys and sells hay. He is licensed to do so, and he is bonded by appellant United States Fidelity and Guaranty Company. Respondent Bolton F. Minister operates the Minister Ranch near Yerington, Nevada, where he raises and sells large quantities of hay. Azevedo and Minister entered into an oral agreement for the purchase and sale of hay. Azevedo deposited funds into an escrow account. The parties began to perform the contract and over the succeeding few months, Minister wrote various accounting memoranda to Azevedo, setting forth the remaining terms of the contract. Minister refused to provide hay on one occasion because the escrow funds had not been replenished. Azevedo stopped buying hay and Minister sued on the balance of the contract. The lower court held that under the Uniform Commercial Code as adopted by Nevada, the memoranda constituted sufficient writing to establish the contract taking the matter out of the statute of frauds and ruled for Minister.
Did the periodic accountings prepared by Minister and sent to Azevedo covering the sale of the hay constitute confirming memoranda within the provisions of NRS 104.2201(2) of the Uniform Commercial Code?
The court affirmed the trial court's judgment finding that Minister’s memoranda were sufficient to establish a writing to memorialize the parties intent to contract and that they were sent within a reasonable time under the circumstances and were unchallenged by Azevedo. Accordingly, the contract was upheld.