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Case 104 US Southern D|str|ct of N 789 I Supp 1229 (1992)

Iacts

lebruary 2 Chllewlch's agenL ln Lhe uk 8yyerly !ohnson LLd Slgned a conLracL wlLh Lhe SovleL
unlon's lorelgn Lconomlc AssoclaLlon ( known as 8aznoexporL) LhaL obllgaLed 8yerly !ohnson and
Chllewlch Lo dellver fooLwear Lo 8aznoexporL ln whaL ls now 8ussla conLalnlng an arblLraLlon
clause
!uly 27 Mr Chllewlch senL a leLLer Lo Mr AnLonlo lllograna whlch summarlzed Lhe negoLlaLlons aL
Lhls meeLlng aLLachlng Lhe 8usslan conLracL
SepLember 2 lllanLo senL a reply LhaL excluded Lhe arblLraLlon provlslon and requesL Chllelwch Lo
accepL lllanL's counLeroffer

March Chllewlch senL lllanLo a Memorandum AgreemenL Lo conflrm LhaL lllanLo was Lo dellver
23 palrs of booLs Lo Chllewlch referrlng angaln Lo Lhe arblLraLlon provlslon ln russlan conLracL
May Chllewlch proceeded Lo obLaln a leLLer of credlL ln lllanLo's favor ln Lhe sum of 2336
dollars
AugusL 7 lllanLo slgned and reLurned Lhe Memorandum agreemenL sLaLlng LhaL lL would noL be
bound by Lhe provlslon conLalned ln russlan conLracL abouL arblLraLlon and clalms
SepLember 3 Chllewlch accepLed dellvery and pald lllanLo for booLs

!anuary Chllewlch accepLed and pald for anoLher 6 booLs Powever lL never purchased Lhe
remalnlng booLs clalmlng LhaL some of Lhese were defecLlve
9rocedura| n|story
ln May lllanLo flled a complalnL ln a uS federal Lrlal courL ln new ?ork alleglng breach of conLracL
Issue
WheLher and how a conLracL beLween lllanLo and Chllewlch was formed cosLlLulng a parLy's conducL an
accepLance
WheLher Lhere was ob[ecLlve conducL evldenclng an lnLenL Lo be bound wlLh respecL Lo Lhe arblLraLlon
provlslon
Law
ClSC
Attlcle 8
(J) lo Jetetmloloq tbe loteot of o potty ot tbe ooJetstooJloq o teosoooble petsoo woolJ bove boJ Joe
cooslJetotloo ls to be qlveo to oll televoot cltcomstooces of tbe cose locloJloq tbe oeqotlotloos ooy
ptoctlces wblcb tbe pottles bove estobllsbeJ betweeo tbemselves osoqes ooJ ooy sobsepoeot cooJoct of
tbe pottles
Attlcle 18
(1) A stotemeot moJe by ot otbet cooJoct of tbe offetee loJlcotloq osseot to oo offet ls oo occeptooce
5lleoce ot looctlvlty Joes oot lo ltself omooot to occeptooce
(J) nowevet lf by vlttoe of tbe offet ot os o tesolt of ptoctlces wblcb tbe pottles bove estobllsbeJ
betweeo tbemselves ot of osoqe tbe offetee moy loJlcote osseot by petfotmloq oo oct socb os ooe
telotloq to tbe Jlspotcb of tbe qooJs ot poymeot of tbe ptlce wltboot ootlce to tbe offetot tbe
occeptooce ls effectlve ot tbe momeot tbe oct ls petfotmeJ ptovlJeJ tbot tbe oct ls petfotmeJ wltblo tbe
petloJ of tlme lolJ Jowo lo tbe pteceJloq potoqtopb

Attlcle 19
(1) A teply to oo offet wblcb potpotts to be oo occeptooce bot cootolos oJJltloos llmltotloos ot otbet
moJlflcotloos ls o tejectloo of tbe offet ooJ coostltotes o coootetoffet
(2) nowevet o teply to oo offet wblcb potpotts to be oo occeptooce bot cootolos oJJltloool ot Jlffeteot
tetms wblcb Jo oot motetlolly oltet tbe tetms of tbe offet coostltotes oo occeptooce ooless tbe offetot
wltboot ooJoe Jeloy objects otolly to tbe Jlsctepoocy ot Jlspotcbes o ootlce to tbot effect lf be Joes oot
so object tbe tetms of tbe coottoct ote tbe tetms of tbe offet wltb tbe moJlflcotloos cootoloeJ lo tbe
occeptooce

no|d|ng
es tbe coottoct wos fotmeJ
es becoose lllooto folleJ to object tbe otblttotloo cloose lo o tlmely fosbloo

Lxp|anat|on
@bete ls slmply oo sotlsfoctoty exploootloo os to wby lllooto folleJ to object to tbe locotpototloo by
tefeteoce of tbe kossloo coottoct lo o tlmely fosbloo As ooteJ obove cbllewlcb boJ lo tbe meootlme
commeoceJ lts petfotmooce ooJet tbe Aqteemeot ooJ tbe lettet of cteJlt lt fotolsbeJ lllooto oo Moy 11
ltself meotlooeJ tbe kossloo coottoct Ao offetee wbo koowloq tbot tbe offetot bos commeoceJ
petfotmooce folls to ootlfy tbe offetot of lts objectloo to tbe tetms of tbe coottoct wltblo o teosoooble tlme
wlll ooJet cettolo cltcomstooces be JeemeJ to bove osseoteJ to tbose tetms lo tbls cose lo llqbt of tbe
exteoslve cootse of ptlot Jeolloq betweeo tbese pottles lllooto wos cettololy ooJet o Joty to olett cbllewlcb
lo tlmely fosbloo to lts objectloos to tbe tetms of tbe Motcb 1J MemotooJom Aqteemeotpottlcolotly sloce
cbllewlcb boJ tepeoteJly tefetteJ lt to tbe kossloo coottoct ooJ lllooto boJ boJ o copy of tbot Jocomeot
fot some tlme

rder
lo llqbt of tbese foctots ooJ beeJloq tbe ptesomptloo lo fovot of otblttotloo wblcb ls eveo sttooqet lo tbe
cootext of lotetootloool commetclol ttoosoctloos tbe coott bolJs tbot lllooto ls boooJ by tbe tetms of tbe
Motcb 1J MemotooJom Aqteemeot ooJ so most otblttote lts Jlspote lo Moscow

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