This document discusses the common law rules and UCC provisions regarding offer and acceptance in contracts. It outlines the mirror image rule and how a purported acceptance that adds qualifications constitutes a counteroffer under common law. It then examines Sections 2-207(1)-(3) of the UCC regarding additional terms in a written confirmation or acceptance between merchants and non-merchants.
This document discusses the common law rules and UCC provisions regarding offer and acceptance in contracts. It outlines the mirror image rule and how a purported acceptance that adds qualifications constitutes a counteroffer under common law. It then examines Sections 2-207(1)-(3) of the UCC regarding additional terms in a written confirmation or acceptance between merchants and non-merchants.
This document discusses the common law rules and UCC provisions regarding offer and acceptance in contracts. It outlines the mirror image rule and how a purported acceptance that adds qualifications constitutes a counteroffer under common law. It then examines Sections 2-207(1)-(3) of the UCC regarding additional terms in a written confirmation or acceptance between merchants and non-merchants.
This document discusses the common law rules and UCC provisions regarding offer and acceptance in contracts. It outlines the mirror image rule and how a purported acceptance that adds qualifications constitutes a counteroffer under common law. It then examines Sections 2-207(1)-(3) of the UCC regarding additional terms in a written confirmation or acceptance between merchants and non-merchants.
Restatement | Common Law Exchange of Services Rest.
§ 59 – purported acceptance which
B (offeree) accepts terms adds qualifications = counteroffer exactly as the offer states K = A’s Terms Rest. § 61 – acceptance which – Mirror Image Rule requests/suggests change of terms not invalidated unless acceptance made to A makes an offer B (offeree) conditional on assent to the No K (as offeror) rejects A’s offer changed/added terms
A (Counteroffer offeree) K = B’s Counteroffer
B (as offeree) accepts terms Terms rejects A’s offer exactly as stated & Makes A (Counteroffer offeree) rejects counteroffer B’s counteroffer No K (B is new offeror)
UCC § 2-207 | Sale of Goods
2-207(1) 2-207(2) 2-207(3)
K Formed Not Additional terms are to be construed as proposals for addition to the contract. Go to Between Definite & seasonable 2-207(2) Merchants These terms are only added in if the offeror assents to the new terms. If the parties fail to expression of acceptance to reach an determine agreement through contract Terms become a part of the contract unless: words, then their terms conduct may be (a) The offer expressly limits acceptance to the Offeror’s terms only; no sufficient to K formed Between terms of the offer terms added in support the finding orally Merchants (b) They materially alter it Materially altering terms not of a contract. Written confirmation Determine (comment 4 & 5) added in terms by (c) objection to term already given or is given = Contract Terms that offeror objected 2-207(2) within a reasonable time after notice of them is (Agreed upon to not added in received (comment 6) terms + gap fillers) Acceptance expressly No K Form adds additional terms that are expressly conditional on assent to them; conditional on assent to Go to additional or different terms 2-207(3) receiver does not assent; but the K is formed through conduct →2-207(3) Klocek v. Gateway, Inc. (Non-Merchant Additional Terms) [Oral] Leonard Pevar Co. v. Evans Products Co. (Between Merchants) Oral agreement to buy computer; ∆ subsequently sent form with additional term; If asking Was the form was an acceptance or written confirmation cite. UCC § 2-207 | Sale of Goods K between merchants 207(2) ∆ did not tell π that transaction was conditional upon assent to the additional terms, because π not merchant additional term is only proposal, so not included in the contract A makes B (1) an offer (offeree) Subsequent Written (original Contract Confirmation with Additional terms are to be accepts Created additional terms construed as proposals offeror) orally Klocek v. Gateway No Klocek v. Gateway, Inc (Additional Klocek Terms in Box)
B’s Terms added in,
(2) Between Yes unless (a), (b), or (c) Counteroffer B gives definite Merchants Pevar apply Rejection & seasonable Contract (2-104)? Not seasonable expression of Leonard Pevar acceptance, Not definite with new terms expression No A’s offer expressly limits B’s new terms A already acceptance to original materially alter the objected to new offer’s terms- Leonard Pevar contract Leonard Pevar terms Did B make acceptance conditional on A’s assent Then, only A’s to new terms? original terms Then, terms that included materially alter Objected to Yes contract not terms not No contract Pevar No included added in (no acceptance) contract ( 2-207(1)) (3) Leonard Pevar Co. v. Evans Products Co. (Lumber Purchase Materially Alter) Parties’ conduct Contract = Material Terms would result in surprise or hardship for other party supports the Agreed upon Examples: Clause negating standard warranties; Clause for unilateral cancelation; clause finding of the terms + Gap unreasonably restricting time for complaints; Limits on damages; Exculpatory clauses; Dispute contract fillers resolution (arbitration, forum selection, choice of law) Leonard Pevar Immaterial Terms would not substantially change the agreement Examples: clause allowing exemption from contract due to causes out of parties’ control; clause stating trade norms explicitly; a clause providing for inspection; a clause providing interest on overdue invoices