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Southwest Engineering Co., Inc. v. Martin Tractor Co., Inc.

Kansas Supreme Court
473 P.2d 18 (1970)


Facts

Southwest Engineering Co., Inc. (Southwest) (plaintiff) was preparing a construction bid for a military base. In preparation for the bid, Southwest obtained a price quote of $18,500 from Martin Tractor Co., Inc. (Martin) (defendant) for a generator. In reliance on Martin’s quote, Southwest placed a successful bid on the construction job. In a subsequent meeting between Southwest and Martin, a representative from Martin provided Southwest with a handwritten memorandum itemizing a new price of $21,500. Southwest agreed to the increased price. In the top left-hand corner of the memorandum, the representative wrote, “Ken Hurt, Martin Tractor, Topeka, Caterpillar.” At the time of the meeting, the parties did not have a firm understanding of how and when Southwest would pay for the generator. Martin failed to provide the generator, and Southwest was forced to buy the generator from another company for $27,541. Southwest sued Martin for breach of contract. The trial court entered judgment in favor of Southwest, and awarded $6,041 in damages. Martin appealed, arguing that the memorandum provided by Martin was not an enforceable sale agreement because it did not satisfy the Uniform Commercial Code’s (UCC) statute of frauds.

Rule of Law

Issue

Holding and Reasoning (Fontron, J.)

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