## Facts

- Phoenix Ancient Art, S.A. (Phoenix), an antiquities dealer, sold a Sumerian statuette to the Kimbell Art Foundation (Kimbell) after extensive negotiations in which the parties exchanged multiple drafts of a sales and warranty agreement.
- Phoenix and Kimbell ultimately executed a written agreement memorializing the sale of the statuette.
- Months later, Phoenix agreed to buy the statuette back from Kimbell, and the parties executed a written agreement for that repurchase.
- To secure Phoenix’s payment obligation under the repurchase agreement, Phoenix granted Kimbell a security interest in a Roman torso sculpture and delivered the torso to Kimbell.
- Kimbell expressed interest in buying the Roman torso from Phoenix and sent Phoenix draft transaction documents, including a proposed agreement, a bill of sale and assignment, a warranty form, and written instructions.
- The draft documents were not fully completed and were not signed.
- Kimbell’s written instructions stated that a purchase would occur only if the documentation was completed, signed, and delivered.
- Before any final agreement was executed, Kimbell decided not to proceed with purchasing the torso, informed Phoenix, and asked how to return the sculpture.
- Phoenix sent Kimbell an invoice for the torso, treating the matter as a completed sale.
- Kimbell reiterated that it was not purchasing the torso.
- Phoenix sued Kimbell for breach of contract, alleging Kimbell agreed to buy the Roman torso.

## Issues

1. Whether the parties formed an enforceable U.C.C. Article 2 contract for the sale of the Roman torso based on negotiations, delivery, and exchanged drafts, despite the absence of a completed and signed final agreement.
2. Whether Kimbell’s express requirement that the purchase documents be completed, signed, and delivered prevented contract formation when that requirement was not satisfied.

## Decision

- The court granted summary judgment for Kimbell and dismissed Phoenix’s breach-of-contract claim.
- The court held that no contract for Kimbell’s purchase of the Roman torso was formed.
- The court treated the exchanged drafts and communications as negotiations because Kimbell made clear it would not be bound unless and until the specified documentation was completed, signed, and delivered.
- Phoenix’s delivery of the torso (initially tied to the security arrangement) and Phoenix’s later invoice did not create a binding sales contract in the face of Kimbell’s stated condition and Kimbell’s decision not to proceed.

## Legal Principles

- Under U.C.C. Article 2, the existence of a sales contract turns on objective manifestations of mutual assent, including whether the parties intended to be bound at all.
- Parties may make execution and delivery of a written agreement a condition to contract formation; when they do, no contract arises until the condition is met.
- Exchanging draft agreements—especially where key documents remain incomplete and unsigned—commonly indicates ongoing negotiation rather than a final deal, particularly when one party’s written instructions require signatures and delivery before any purchase.
- A party’s unilateral actions (such as issuing an invoice) cannot create a contract without the other party’s assent, and cannot override an expressed “no deal unless signed” condition.
- When the documentary record is clear and material facts about the parties’ communications are not in genuine dispute, contract formation may be resolved as a matter of law on summary judgment.

## Conclusion

Because Kimbell expressly conditioned any purchase of the Roman torso on receiving completed, signed, and delivered documentation, and the parties never executed those documents, the court held that no U.C.C. sales contract was formed and entered judgment for Kimbell on Phoenix’s breach-of-contract claim.


Phoenix Ancient Art, S.A. v. Kimbell Art Foundation, 52 U.C.C. Rep. Serv. 2d (Callaghan) 81 (2003)