Also known as: specially manufactured goods · custom goods · specially made goods
Written by attorneys · grounded in primary & secondary sources — see below
Goods produced according to a buyer's unique specifications. Such goods qualify as movable items under sales law even before they exist and trigger an exception to the statute of frauds when the seller has made a substantial beginning of manufacture or procurement commitments before receiving notice of repudiation.
Sapphire Technologies agrees to fabricate ten unique brackets for Scott Summers according to his precise engineering drawings. The brackets do not yet exist when the parties reach their oral deal. Because the items will be movable once identified to the contract, they qualify as goods even though they remain future goods at formation.
Sterling Dynamics begins cutting and welding specialized pipe fittings for Samuel Soto after an oral order exceeding five hundred dollars. The fittings match only Soto's specifications and cannot be sold to other customers. Sterling's substantial start on manufacture before any repudiation allows enforcement of the oral contract despite the missing signed writing.
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The exception applies when goods are made to the buyer's unique specifications, are unsuitable for sale to others in the ordinary course of the seller's business, and the seller has made a substantial beginning of manufacture or procurement commitments before receiving notice of repudiation under circumstances indicating the goods are for that buyer.
Supporting sources
Yes. Goods are defined to include all things that are movable at the time of identification to the contract for sale, and the definition explicitly lists specially manufactured goods among the items covered.
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The seller must demonstrate that the goods were produced for the particular buyer, are not suitable for resale in the ordinary course, and that substantial manufacturing or procurement occurred before repudiation notice under circumstances reasonably indicating the buyer was the intended recipient.
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…the uniform commercial code's statute of frauds provision. Moreover, O.R.C. Sec. 1302.04 contains special provisions concerning specially manufactured goods and goods for which payment has been made and accepted. These terms are unique to the commercial sales field and a determination of rights often require referring to related uniform…