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Dealer Management Systems v. Design Automotive Group

355 Ill. App. 3d 416, 822 N.E.2d 556 (2005)

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Dealer Management Systems v. Design Automotive Group

Illinois Appellate Court
355 Ill. App. 3d 416, 822 N.E.2d 556 (2005)

RW

Facts

A purchase agreement between Dealer Management Systems, Inc. (Dealer Management) (plaintiff) and Design Automotive Group, Inc. (Design) (defendant) stipulated that Dealer Management would provide Design with a customized software system for a one-time payment of $20,000 for the base system, plus $15,000 for the system’s customization, installation, and related training and support. The agreement put no time limit on Design’s authorization to use the system. Dealer Management sued Design for breaching the agreement. Design moved to dismiss on the grounds that Design never signed the agreement and that the Uniform Commercial Code (UCC) statute of frauds rendered an unsigned contract unenforceable. The trial court granted Design’s motion. On appeal to the Illinois Appellate Court, Dealer Management argued that the agreement was predominantly for the provision of services and therefore not subject to the statute of frauds.

Rule of Law

Issue

Holding and Reasoning (Callum, J.)

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