Costco Wholesale Corp. V. World Wide Licensing Corp. - Division One Court of Appeals of Washington

Costco Wholesale Corp. V. World Wide Licensing Corp.

By Division One Court of Appeals of Washington

  • Release Date: 1995-07-24
  • Genre: Law
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Costco Wholesale Corp. V. World Wide Licensing Corp. Division One Court of Appeals of Washington Book Review Score: ★★★★★ 5/5 stars

WEBSTER, J. -- This case involves modifications allegedly made to a contract for the sale of jewelry. Costco Wholesale Corporation contends that the price it agreed to pay Worldwide Licensing Corporation was modified when Worldwide's agent agreed, in writing, to rebate part of the purchase price. Worldwide alleges Costco orally modified the contract by promising to buy more jewelry. Each party contends that the modification alleged by the other is barred by the statute of frauds, which requires certain contracts to be written. We hold that the contract's initial satisfaction of the statute passes through to the modification, but that the contract as modified can only be enforced up to the quantity stated. Thus, the statute of frauds bars the oral promise to purchase additional jewelry, but not the rebate claim. Although the rebate claim is not barred, Costco must still prove that there was a modification. Because there is an issue of material fact about the extent of the agent's apparent authority to agree to the rebate, we reverse the summary judgment in favor of Costco and remand for trial.

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