Breach of Contract Case Study

Distinctive and Idea Furniture Company

Idea Furniture Company (IDEA) sells home furnishings that require some assembly by the customer. To make it easier for the customers, IDEA provides simple instructions and arranges the hardware, such as screws, nuts, bolts, and other items, in specially designed pouches that were sealed to a rectangular piece of cardboard. The number of pouches per item varies from five to ten, depending on the size and nature of the finished product.

IDEA made an oral contract with Distinctive Packaging, Inc. (Distinctive) under which Distinctive would supply the packing pouches for IDEA's furniture. Distinctive made a substantial number of packing pouches following IDEA's specifications. IDEA's sales dropped and they refused to take delivery of any pouches. When Distinctive sued for breach of contract, IDEA argued that the contract could not be enforced because the contract was not in writing.

Will Distinctive succeed in its breach of contract suit against IDEA? Explain why or why not.

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