## Facts

- Homer Buffaloe, a tobacco farmer, rented five “Roanoke box” tobacco barns from Patricia and Lowell Hart under an oral, cash “handshake” arrangement.
- After paying rent in October 1988, Buffaloe and the Harts orally agreed Buffaloe would buy the five barns for $20,000, payable in four annual $5,000 installments; no written contract was made.
- Buffaloe remained in possession of the barns on the Harts’ land and continued using them.
- The Harts kept the barns insured because Buffaloe could not obtain insurance in his own name; Buffaloe reimbursed the premiums.
- Buffaloe made repairs and improvements, told others he had bought the barns, advertised them for sale, and accepted deposits from prospective purchasers.
- Buffaloe informed Mrs. Hart he was “selling the barns,” and she said it would “be fine.”
- Buffaloe tendered a $5,000 check marked as payment on the barns; Mrs. Hart offered a receipt, but Buffaloe treated the check as the receipt.
- The Harts kept the check for several days, then returned it torn and informed Buffaloe they had sold the barns to another buyer, including individuals with whom Buffaloe had been negotiating.

## Issues

1. Whether the oral agreement for the sale of the barns was unenforceable under U.C.C. § 2-201 because there was no writing signed by the Harts.
2. Whether evidence of acceptance and part performance brought the agreement within U.C.C. § 2-201(3)(c), permitting enforcement despite the lack of a signed writing.
3. Whether the trial court properly denied the Harts’ motions for directed verdict and judgment notwithstanding the verdict.

## Decision

- The Court of Appeals affirmed the judgment for Buffaloe.
- The court held the buyer-signed check, standing alone, did not satisfy U.C.C. § 2-201(1) because it was not signed by the party to be charged (the Harts).
- The court held there was substantial evidence from which a jury could find acceptance and part performance under U.C.C. § 2-201(3)(c), making the oral contract enforceable.
- Viewing the evidence in the light most favorable to Buffaloe, the court concluded the trial court correctly submitted the case to the jury and properly denied directed verdict and JNOV.

## Legal Principles

- Tobacco barns treated as “goods” may fall within U.C.C. Article 2, triggering the § 2-201 statute of frauds for sales of goods priced at $500 or more.
- A writing offered to satisfy U.C.C. § 2-201(1) must be signed by the party against whom enforcement is sought; a check signed only by the buyer is insufficient without the seller’s signature.
- Under U.C.C. § 2-201(3)(c), an oral contract may be enforced to the extent goods have been “received and accepted” or “payment has been made and accepted.”
- Acceptance and part performance may be shown by conduct consistent with ownership and seller acquiescence, including continued possession, reimbursement of insurance, repairs and improvements, authorization or non-objection to resale efforts, and retention of a tendered installment payment.
- On review of denied directed verdict/JNOV motions, an appellate court asks whether there is substantial evidence supporting the verdict, construing conflicts in favor of the prevailing party.

## Conclusion

The court enforced an oral agreement for the sale of tobacco barns because the evidence permitted a finding that the parties’ conduct constituted acceptance and part performance under U.C.C. § 2-201(3)(c), even though no seller-signed writing satisfied the statute of frauds.


Buffaloe v. Hart, 114 N.C. App. 52, 441 S.E.2d 172 (N.C. Ct. App. 1994)