Legal Dictionary of Pakistan

merchant exception

Contracts. An exemption from the statute of frauds making a contract between merchants enforceable if, within a reasonable time after they reach an oral agreement, a written confirmation of the terms is sent, to which the recipient does not object within ten days of receiving it. ( The only effect of failing to object to the written confirmation is that the recipient will be precluded from relying on the statute of frauds - or the lack of a formal, written agreement - as a defense to a breach-of-contract claim. The party seeking to enforce an agreement must still prove that an agreement was reached. UCC § 2-201(2).