-
If terms are different,
there are 3 approaches courts take
- Different terms do not become
part of the agreement b/c §2-207(2)
only mentions additional terms
- Different terms treated
exactly the same as additional
- MAJORITY: Knockout rule, different terms
knock each other out of the agreement
so that contract then consists of agreed
upon terms and implied terms (gap terms)
-
Use this in 3 scenarios:
- Written offer and
written acceptance
- Oral offer & acceptance w/
Written confirmation
- Oral offer and
written acceptance
-
Offer
-
"Expressly conditional" Counteroffer [OR]
Rejection
-
No acceptance
- No contract
-
Clear acceptance
of counterofferor
- K on counteroffer's terms
-
No K formed b/c offer & acceptance
contradict each other; however
parties' actions show K exist
-
Look to §2-207(3)
- Conduct by both parties
that recognizes a K is sufficient,
even though the writing don't
establish a contract
- Conflicting terms are ignored
(FIRST SHOT RULE)
K terms are those agreed upon
Plus any terms incorporated by UCC "gap fillers"
-
Acceptance that has
additional or different terms
-
Between Merchants
-
Terms become part
of contract, UNLESS
- Offer expressly limits
acceptance to terms
of the offer
- Terms materially alter
- Surprise or Hardship?
- Objection to terms has already
been given or is given in
a reasonable time
-
Not between merchants
- Additional terms = proposals