Statute of Fraud

[Kurt B.]

I'm a student at a university in Hoboken, New Jersey. I'm also an officer at a university club that organises events. For a particular event, I requested a quote from Restaurant 'A' which they sent as an image on text message. After a day I texted the restaurant owner that we are considering quotations from other restaurants as well and the club will finalize one and forward it to the university. The next day I texted the restaurant owner that the club is ready to go for his quote and I'll forward it to the university. Later that day the club decided to switch to another restaurant, Restaurant 'B'. So the following day I informed the owner of Restaurant A that we are not going forward with their quote. There was no quote acceptance email from the university for restaurant A. The restaurant owner is now saying that they ordered raw materials pertaining the event and I should pay for the raw materials or they'll file a lawsuit against me. Please help! I'm I in a legal binding contract and liable to pay for the raw materials or the restaurant A owner is at fault and shouldn't have ordered the raw materials beforehand?

 

[quincy]

I'm a student at a university in Hoboken, New Jersey. I'm also an officer at a university club that organises events. For a particular event, I requested a quote from Restaurant 'A' which they sent as an image on text message. After a day I texted the restaurant owner that we are considering quotations from other restaurants as well and the club will finalize one and forward it to the university. The next day I texted the restaurant owner that the club is ready to go for his quote and I'll forward it to the university. Later that day the club decided to switch to another restaurant, Restaurant 'B'. So the following day I informed the owner of Restaurant A that we are not going forward with their quote. There was no quote acceptance email from the university for restaurant A. The restaurant owner is now saying that they ordered raw materials pertaining the event and I should pay for the raw materials or they'll file a lawsuit against me. Please help! I'm I in a legal binding contract and liable to pay for the raw materials or the restaurant A owner is at fault and shouldn't have ordered the raw materials beforehand?

Was the contract conditioned on a signature from the University or were you authorized to commit to the contract without the University signing the agreement?

On what date is the event scheduled?

Here is a link to New Jersey's statute of frauds:
https://law.justia.com/codes/new-jersey/2018/title-12a/chapter-2/section-12a-2-201/

 

[adjusterjack]

I texted the restaurant owner that the club is ready to go for his quote and I'll forward it to the university.

Provide the full content of that text word for word.

And quote any reply from the restaurant.

 

[Kurt B.]

Was the contract conditioned on a signature from the University or were you authorized to commit to the contract without the University signing the agreement?

On what date is the event scheduled?

Here is a link to New Jersey's statute of fraud:
https://law.justia.com/codes/new-jersey/2018/title-12a/chapter-2/section-12a-2-201/

There was no contract signed. The club's job is to just get a good enough for the event and forward it to the university. The university lets the club choose any quote as long as it fits the budget.

The event is scheduled on 25th of Oct.

 

[Kurt B.]

Provide the full content of that text word for word.

And quote any reply from the restaurant.

I meant to tell the restaurant owner that of all the quotes the club has, the club is ready to forward their quote to the university and the exact words were-

"HI XYZ, the club is ready to go for your quote. I'll forward the quote to ABC (university representative) and keep you in loop like before."

Reply from the restaurant-
"OK thanks, call me when you get a chance."

 

[LdiJ]

I meant to tell the restaurant owner that of all the quotes the club has, the club is ready to forward their quote to the university and the exact words were-

"HI XYZ, the club is ready to go for your quote. I'll forward the quote to ABC (university representative) and keep you in loop like before."

Reply from the restaurant-
"OK thanks, call me when you get a chance."

The event is 4 days from now. You said that the club was ready to "go for" the quote. Any restaurant would almost had to have ordered raw materials for an event that close. The restaurant might really have a case against you. Your wording was very poor and you clearly did not explain the situation.

You should have said that you were forwarding the quite to ABC for a final decision. The restaurant that HAS been chosen may have trouble accomodating the event with such little notice.

 

[FlyingRon]

It's statute of frauds [plural] by the way.

"Ready to go for" doesn't sound like the acceptance of an offer (the quote).

 

[quincy]

I meant to tell the restaurant owner that of all the quotes the club has, the club is ready to forward their quote to the university and the exact words were-

"HI XYZ, the club is ready to go for your quote. I'll forward the quote to ABC (university representative) and keep you in loop like before."

Reply from the restaurant-
"OK thanks, call me when you get a chance."

Although I understand how the restaurant could see the need to order supplies in advance of the October 25 event, I am not sure that the email exchanges are enough to support their contention that you owe for these supplies.

To me it sounds as if you were telling the restaurant that you still needed university approval. I do not see a firm commitment.

But ... you did not provide us with the original exchange with the restaurant or the quote from the restaurant with its terms, or any negotiations you might have had. You did not provide us with the full text exchange.

And, it really doesn't matter what any of us think. What matters is what the restaurant thinks - and what they intend to do about what they see as a breach of contract.

I suggest you turn everything over to your university's legal department to handle.

I hope your event is able to proceed as scheduled. Good luck.

 

[adjusterjack]

There was no contract signed.

You don't need to sign a contract to have a contract.

The club's job is to just get a good enough for the event and forward it to the university. The university lets the club choose any quote as long as it fits the budget.

The person at the restaurant doesn't know what the club's job is, only that you have "apparent authority" (google it) to speak for the club.

I meant to tell

What you "meant to tell" is not what you did tell.

"HI XYZ, the club is ready to go for your quote. I'll forward the quote to ABC (university representative) and keep you in loop like before."

Reply from the restaurant-
"OK thanks, call me when you get a chance."

The first sentence is a commitment. The second sentence is ambiguous. It's not clear whether forwarding the quote to ABC was for approval or FYI. Ambiguities are often construed against the person who created them (that's you). The third sentence may actually be in your favor because it appears that the writer acknowledged that further discussion was to be had before the order was made.

That you may have a defense doesn't prevent you (or the club and university) from being sued. Depends on how much money the restaurant is out and how far the owner wants to take it.

I agree that you should be letting the university's legal department handle this. Any further discussion you have with the restaurant owner is likely to just get you in deeper.

 

[quincy]

What amount of money is Restaurant A claiming you owe?

 

[Kurt B.]

3000 USD
The quote was for $4300

 

[quincy]

3000 USD
The quote was for $4300

Thank you for answering my question.

The $3000 is enough money that the restaurant might seriously consider suing over it. And I imagine that the $3000 will put a major dent in the remaining funds available for the event.

I really think your school's legal department needs to address the matter with Restaurant A.

Good luck.

 

[FlyingRon]

You don't need to sign a contract to have a contract.

True, but in NJ, if the amount in this situation, if the amounts involved are in excess of $500, you do. Hence the reference to the statute of frauds.

 

[quincy]

True, but in NJ, if the amount in this situation, if the amounts involved are in excess of $500, you do. Hence the reference to the statute of frauds.

And, here, there is some question as to who needed to sign.

 

[Kurt B.]

Thank you for answering my question.

The $3000 is enough money that the restaurant might seriously consider suing over it. And I imagine that the $3000 will put a major dent in the remaining funds available for the event.

I really think your school's legal department needs to address the matter with Restaurant A.

Good luck.

Thank you! I would also like to add that we have sourced one of our previous events from this restaurant A. In that case after I submitted a quote to ABC (University representative), I texted the restaurant A owner saying -

"Sorry couldn't call you, the university has accepted your quote. There are certain formalities that need to addressed. I'll call you asap"

In this case I texted them-
"The committee/club is ready to go for your quote. I'll forward the quote to ABC (university representative) and keep you in loop like before"

I was worried that this statement from me might cause trouble